Trusts aren’t only for the elderly and sick. They should be set up by anyone who would be leaving behind someone or something if an accident or illness were to strike them. There are many reasons why someone young and thriving would set up a trust and there are reasons beyond having kids that warrant creating one.
Receiving or Giving an Important Gift
If a relative or friend has given you a priceless gift that should be preserved long after you’re gone, a trust or will should be written to help preserve the integrity of this gift. Trusts are also for those who are wanting to leave money behind to a responsible friend or family member. Even if they prove not to be responsible, you get to control what happens with that money, even though it’s for them and you won’t be around.
Future Residential Care
Setting up a trust with trust solicitors in London for yourself is extremely important if you own a house or something of high value. By creating this type of trust, you can prevent the high-value item from being sold to help pay for medical bills or residential care. If you are sick enough to need hospice-type care, you may not be in your right mind to make prudent choices, which is why pre-made trusts are important. In times of need, trusts that protect a home are all that a family has in case something happens to you.
Protecting an Inheritance
If you’re married and want to protect any items after your passing, you may want to look into a trust. Without a trust or will set up, your children may be threatened by any future prospects your widow has if he or she remarries. A trust is a legally-binding document that cannot be changed by anyone after your passing, so your spouse will not be able to edit when and if he or she remarries or wants to change who receives what. A trust acts as YOUR security for others and yourself.
Solicitors also work with disputes regularly so if there are any qualms or invalidities with the will or trust, legal action can be taken. Whether someone isn’t in the right mental state to be signing a will, fraudulent claims or matters are being brought, or even if a will is being created fraudulently, the right solicitor can assist.
To truly be prepared, setting up a power of attorney will be your best bet. If you think you’ll be unable to take care of any financial prospects at some point in your life, you can legally assign someone to do the task for you. Doing this can prevent someone you dislike from gaining power of attorney when you can’t speak for yourself.
Taxing an Inheritance
Not many people know about tax procedures with trusts and estates. In the United Kingdom, if a trust is under £325,000, there will be no taxes taken out. For anything valued over this amount, there is a 40% inheritance tax that the recipient must pay in order for to receive what’s rightfully his or hers.