At Wills 4 Less we consider that the security and knowledge of the protection of your loved ones should never be a gamble. A discretionary trust is one of the most potent tools in UK law to ensure your loved ones are looked after no matter what happens. With Discretionary Trusts Wills 4 Less, you can have peace of mind knowing your family’s future is safeguarded.
How do you feel about leaving money to a minor or vulnerable loved one outright in your will? This may affect any right they have to means-tested benefits, or put them at risk of financial abuse.
A Discretionary family trust can achieve this by retaining the assets under trustee management, but providing for beneficiaries.
In the UK, the following are typical uses of a discretionary trust:
In the absence of a Discretionary family trust Hampshire, your property might:
The discretionary trust is suitable for someone who wishes to safeguard their possessions and dependents in the most flexible manner. For parents with children under 18, a Discretionary family trust, for example, will safeguard the funds until the children come of age and can be trusted to make financial decisions.
A discretionary family trust could ensure that a disabled or vulnerable loved one is provided for without reducing their entitlement to means-tested benefits.
If you:
Have young children
Wish to leave the benefits eligibility for a loved one
Own a business they want to keep in the family
Have a complex family situation
Want to leave to my kids and grandkids.
Then you absolutely need a discretionary trust for your will. Without it, your assets could be squandered, abused or squatted by care fees and tax unnecessarily.
Now consider leaving £200,000 straight to your child at that age. It sounds supportive, but is it? At that age, most young people aren’t prepared to handle such a large amount. Without guidance, it can get quickly spent on things that don’t build a successful life.
Another advantage is that with a discretionary trust, trustees can pay out money gradually for university fees, a first home or other important expenses – rather than allowing the beneficiary full access to their inheritance at a time when they might not be ready for it. This way, you know that your money will actually be put toward their growth.
Consider, for a moment, some cherished other with learning disabilities. An outright bequest might knock them off the list of crucial state benefits or expose them to financial exploitation. A family trust guards them by ensuring funds are protected and administered for their care and welfare through a discretionary trust.
Or what if your child gets divorced later in life? The money left outright could be lost in the divorce settlement. A discretionary family trust protects your assets for them and for the next generation.
A discretionary family trust is more than a legal vehicle. It’s a way to love and care for your family, from beyond the grave.
What is a Discretionary Trust?
You can put assets (like financial products, property, or shares) into a trust, managed by trustees, which you appoint. As with an outright gift or standard trust, the beneficiaries have no automatic entitlement to the assets. Instead, it’s your trustees who decide when and how your beneficiaries will receive money from your trust, ensuring you have the greatest amount of flexibility and control even when you’re not around.
This means your trustees can:
Respond to evolving needs of the beneficiaries
✅ Protect vulnerable family members
✅ Reduce divorce claims and creditor attacks
✅ Take control of your IHT exposure
When would I look at establishing a Will Discretionary Trust?
You might choose a discretionary trust if you have vulnerable children, minors or beneficiaries with spendthrift issues, and would like to protect your investments for them. It’s perfect if you are concerned about care fees, remarriage or inheritance tax.
If you have one, add it to your Will, so your trustees can provide for your family according to their needs. It provides peace of mind that your wishes will be respected and your loved ones looked after as they ought to be.
How regularly does a Discretionary Trust need to be checked or refreshed?
Review your discretionary trust every 2-3 years or when such as births, deaths, marriage, divorce, or things take a turn for the better (or worse!) Ultimately it is important that the right actions are taken to protect all the parties concerned, including creditors of the beneficiaries. Many people fear that their trust is not current with their family’s needs or with tax laws.
Regular review ensures that your wishes are still effective, your loved ones are still protected and that your trust works as you intended it to work. Talk to us today for a review of your trust and to have the peace of certainty when it comes to estate planning.
What does a Discretionary Trust in my Will cost?
For the addition of a discretionary trust in a Will in the UK, you would be charged between £250 – £800 depending on the level of complexity and advice required. Lots of people worry about the extra cost, but are reassured that it shields their vulnerable loved ones and cuts inheritance tax risks.
It’s a small price for peace of mind and family security in the long run. Chat with our team today for an upfront and tailored quote that allows you to add a discretionary trust in your Will with peace of mind.
How is a Discretionary Trust managed?
Your discretionary trust is controlled by the trustees. They:
There’s plenty of fear about misuse of the money, but the trustees are taking an adult approach to help your beneficiaries. This optional coverage puts your mind at ease, the future of your family is intact and secure.
What are the pitfalls to avoid when establishing a Discretionary Trust?
Common mistakes include:
Eliminating these mistakes helps ensure that your trust does its job of taking care of your loved ones. Contact us to talk to the experts for peace of mind.
UK Law Experts – Our legal practitioners are trained in making Discretionary Trusts which follow the current UK Law and taxation rules.
Reasonable Pricing – People should be able to protect their family without going broke.
PEACE OF MIND -- Sleep better knowing your kids and other loved ones are protected.
Quick and stress free process – Our experts have made setting up a discretionary family trust, simple and easy to understand, with no complicated legal jargon.
No one knows what will happen tomorrow. Establishing a ‘discretionary trust’ today could mean the difference in whether your loved ones are financially secure …. or having to struggle financially. Time is of the essence, too – or lack of time, that is – the sooner you establish a Discretionary Family Trust, the sooner you can stop worrying you’re not doing everything you can to safeguard your family’s future.
We Make It Simple
Here at Wills 4 Less, our knowledgeable team will explain to you how a discretionary trust works in straightforward terms from beginning to end. We make sure your trust is written to be appropriate, that your trustees know to follow your plan, and that your beneficiaries are secure and protected.