When someone dies, the waters can become murky if no trust is in place. The last thing anyone wants to think about when a loved one passes is arguing amongst themselves over money and their estate. By ensuring that a trust is in place, you are making the legal situation of your passing an easier process for your loved ones.
What Is A Trust?
A trust allows for a certain amount of the deceased person’s assets to be passed onto family members in a tax-efficient way. Trusts enable the deceased person to provide for the future of their children and spouses from previous marriages too. A trust can also allow for funding for specific things, such as health care or medical bills.
Why Have A Trust?
One of the attractions of using a trust when succession planning is that the person is able to reduce the value of their estate for Inheritance Tax purposes. Inheritance Tax, or death tax, is the tax owed when somebody dies and their estate is worth over £325,000. It’s often advised to avoid making a gift if the recipients are still young or have never dealt with large amounts of money before.
What Other Benefits Are There To Having Trust?
Trusts offer a lot of great flexibility when there are younger children or vulnerable families involved. This allows an easier course to navigate through for more complex situations. One of the greatest benefits of trusts is that they help retain the person’s vision and desires as well as reducing any possible disputes between any beneficiaries after their passing.
How To Define Succession Planning
Succession planning provides control over the execution of that person’s vision of the succession of their assets after they die. It allows the person to make a plan now so their wishes can be upheld and followed after they die.
How To Prepare A Succession Plan
Succession planning can be complex to navigate and as such, it’s best if you engage the services of a solicitor. This will not only make the process much easier for you but will also ensure that everything is legally binding too.
As much as you probably do not want to think about setting up trusts right now, it’s important that you do. You will be safe in the knowledge that you have ensured your passing will result in more ease for your loved ones.
If you need help with your estate succession planning, contact Bowsers today and we can help you to put a plan in place.
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