There are a number of trusts which can be used, the suitability depending on the precise requirements of the individual and the tax consequesnces of the trust. Some of the reasons for establishing a trust include:
Types of Trust
Bare trust - a bare trust is one under which the beneficiary is absolutely entitled to benefits (both income and capital). At age 18, a beneficiary, who is absolutely entitled, can call for their share of the trust fund to be paid to him or her.
Discretionary trust - this is a trust where a list of named beneficiaries, or catergories of beneficiary, are entitled to the trust fund. The trustees have the discretion to appoint capital and income to any beneficiary or beneficiaries. It is important that the person creating the trust reserves no benefit from it.
Discretionary will trusts - If the Will Trust is discretionary in nature, the surviving spouse, children and grandchildren can be beneficiaries.The trustees can decide who should benefit from income and capital and can make appropriate payments.
So, for example, capital or income could be appointed to the surviving spouse as and when required leaving the rest of the trust intact for distribution to children or grandchildren after the surviving spouse's death. Alternatively, if the trust includes an appropriate provision, the trustees may make loans to the surviving spouse which comprises debts against his or her estate, reducing its value for inheritance tax purposes
Paul would be pleased to show you how a trust can dramatically improve the financial security of your family.
Trust Planning/ how to set up a trust/ trusts for property/ property trusts/ tax and trusts/ trusts/ family trusts/ discretionary trusts/ asset protection trust/