Trusts, Estate and Financial Planning

What is a Trust and Why Have One?

Why Have a Trust?

A trust enables the control and management of beneficiaries who are children.

With a trust, it is possible to set conditions over the inheritance. This might be dictating the age at which a child inherits or, if inheriting everything at once is not deemed appropriate, the period over which the inheritance is received. It might also be by stipulating how this money should be used (for example, a property or education).

Trusts can also offer protection against inheritance tax.

Inheritance Tax (IHT) in Relation to Trusts

Trusts can help minimise the amount of tax payable by keeping certain parts of your estate outside the taxable amount.

The laws surrounding inheritance tax are complex and it is important to take professional advice.

For further details, see the Government information on trusts and inheritance tax.

To find local companies that can help you set up a trust, please go to Wills, Trusts & Estate Planners in the Providers.

Estate Planning

What is My Estate?

Your estate is everything you own, including property, shares, cash, etc.

Why Make a Plan?

Making a plan allows you to set down in writing what you want to happen with your estate after your death. It can give you and your loved ones peace of mind to know that your wishes are clear and that they will be honoured.

Planning in advance will enable you to understand and mitigate any inheritance tax that is due on your estate.

The plan may contain other details such as:

• where your Will is kept
• where your Letter of Wishes or Letter of Funeral Wishes is kept (if you have one)
• a full inventory of everything you own and any outstanding debts
• gifts you have made in the past 7 years

To find local companies that can help you prepare an Estate Plan, please go to Wills, Trusts & Estate Planners in the Providers section.

The Importance of Financial Planning

Financial Clarity for Your Present and Your Future

Most people like to make some sort of financial plan to ensure they can continue to live in the way they want towards the end of their career and through retirement. This can be as simple as putting something away for ‘a rainy day’, or making more structured provision.

Longer life-spans and the cost of care in later life mean it is never too soon to start thinking about, and saving for, the future. Making sure you keep comprehensive and up-to-date records will help you and, when the time comes, those closest to you understand your financial affairs.

Enlisting the Help of a Professional

Over the years, we may build up a wide range of financial interests, shares, investments, pensions and insurance policies. Sometimes it is beneficial to get professional help in managing these. It is the role of a financial planner to help you to rationalise what you have and make sense of it all, ahead of time. Having helped you to establish what you have accumulated, a financial planner will work with you to understand what is important to you, what you want to achieve in the time you have remaining and help you to leave a lasting legacy for your loved ones. It is the financial planner’s job to design the financial strategy to achieve your most deeply held objectives and ensure that your financial affairs are in good order. Working with a financial planner allows you to move forward with confidence about your financial situation.

Whether you manage your affairs yourself, or enlist the help of a professional, it can be reassuring for both you and your loved one to know your affairs are in order and that you have what you need to continue to live your life in the way you want.

You can find professionals who can help in Financial Planners & Digital Lockers.