What is a Living Trust and do I need one?

What is a Living Trust and do I need one?

What is the main purpose of a living trust? How does a living trust work in the UK? What are the benefits of a living trust?

This article outlines how a living trust works and how it could be useful for you.

write your will online

It is natural to want to protect your assets for the benefit of your loved ones.

People are motivated to provide for their children throughout their lives and want what is best for them.

Many people draft a Will hoping to ensure that hard-earned property and assets acquired during their lifetime, are passed on to their children and chosen beneficiaries after their death.

However, a Will can only dispose of the assets that you own at the date of your death and if their value depletes during your lifetime, there will be little if anything left for your beneficiaries to inherit.

For this reason, lifetime Living Trusts are useful.

•  What is a Living Trust?

• What are the benefits of having a Living Trust?

What is a Living Trust?

A Living Trust is very similar to a Will in that you outline your wishes about your assets and heirs.

However, unlike a Will, a Living Trust is effective whilst you are still alive.

Living Trusts protect your assets for you during your lifetime and give you the confidence that your estate can be passed on securely and intact to your spouse, your children and their bloodline, or other named beneficiaries, after your death.

You can place many asset-types into a Living Trust, including your property, savings and investments.

Your chosen trustees can take control of the assets, if you wish. This may be useful for you and your family in certain situations.

What are the benefits of having a Living Trust?

A Living Trust bypasses the time-consuming probate process.

As a Living Trust is operative during your lifetime, your chosen trustees do not have to wait until your death to carry out the instructions set out in the trust instrument – they can do so immediately.

This is useful if you are unable to manage your financial, healthcare and legal affairs due to an illness or incapacity, such as Parkinson’s disease or dementia.

You can place your assets in a Living Trust to ensure your beneficiaries receive them at a time that is right for you and them, rather than solely on your death. This way you can see them enjoy the asset with you and show you their gratitude.

A Living Trust gives you complete control over what is to happen. You choose the trustees, you choose the beneficiaries, you choose the property in the Living Trust. You decide what the Trustees can and cannot do.

A Living Trust can also protect your share of the property for your children in the event of your partner remarrying. A Living Trust can ensure your assets remain in your bloodline.

How can we help?

Our team of experts have a wealth of experience in drawing up Living Trusts to suit your unique needs and wishes.

Get started today by speaking with a specialist on 01865 507174 or by emailing us at info@adewills.co.uk.

Legal Insights

How can we help you?

Any questions, comments or just need more information?

Write my Will online

Confused about getting started? Here is a useful checklist to show you what you need to know, before writing a Will.