Trusts: An efficient and effective estate planning option

How could you benefit from using a trust?

Trusts provide a useful way of managing and protecting assets when life becomes unpredictable. 

By establishing a trust, you can retain control of assets while benefiting your chosen beneficiaries. This is especially useful when someone is too young, elderly, irresponsible, or incapacitated to manage the assets personally, or to provide protection in cases of marital breakdown or business failure.

As an example, a family used a trust to ensure their business stayed within the family after the owner's unexpected passing, providing financial stability and continuity.

Even in stable times, trusts have a role to play in wealth management, succession of property, and estate planning.  By establishing a trust, you can remove assets from your death estate to allow immediate access to your loved ones upon death. Additionally, you can ensure your most cherished possessions stay within your family for generations, even after your death.

Many people believe trusts are only for the wealthy, but they can be beneficial for individuals at various income levels, offering protection and peace of mind.

The transparency of trusts

Despite the various benefits, for many, the word ‘trust’ can still be considered a loaded one.  However, the registration regime for trusts has become more transparent in recent years. 

Most trusts, certainly the vast majority of UK trusts, need to be registered on HMRC’s Trust Register, which requires details of, among other things, beneficial owners and trustees. Are you up to date with the current rules for trust registration?

The details that must be recorded on the Trust Register, such as the beneficial ownership of trust assets, are governed by the Fifth Money Laundering Directive (5MLD), enacted on 10 January 2020, just before the UK left the EU, and consequential regulations which came into force from 5 October 2020. With this increased transparency of trusts, providing reassurance for some, it’s worth re-considering the role they could play to secure you and your family’s future.

Unlike wills, which take effect only after death, trusts can manage and protect assets during your lifetime and beyond, offering greater flexibility and control.

For professional advice on UK resident and offshore trusts, fill out the form below and one of our experts will be in touch to discuss how we can help. Still not convinced? Contact us for a chat about how trusts can benefit you and how easily they can be set up and administered.