An Inheritance Trust is simply a Trust you set up in order to transfer your estate to on your death.
You don't "will' your property to your kids. You "will" it to the trust.
See the advantages below.
The average Will for a family is usually where a partner leaves everything to the other with a gift over to children and a provision for the substitution of grandchildren if the child ( parent ) has died.
While some people have decided that a Trust is not appropriate for their own circumstances, many are considering that it would be wise to form Trusts for their children or encourage their children to up their own Trusts.
We have placed this topic within a separate category but it clearly must be read with our other related topics in the boxes at the top and the bottom of this page.
Put quite simply, instead of leaving your assets to your child or children you leave it to a trust with that child or those children as the beneficuairies.
That way, you are able to retain some control, or at least, guidance over those assets.
This then gives the parents the opportunity of leaving a child's share in the their estate directly to a Trust in which that child is a discretionary beneficiary and who will possibly control the Trust at some time or another.
The advantages include:
1. ' Ring fencing ' assets for a particular child and his family.
2. Avoids the necessity of a child, who wants to transfer personal assets (including the subject of any bequest), to a Trust, having to sell those assets to another Trust at market value and then having to embark upon a gifting programme to eliminate the debt. A simple bequest to a Trust for a child will avoid that having to happen
3. Gives the spouse the opportunity of retaining some sort of control over the asset for the child (if felt necessary) in that the asset can be transferred to a Trust controlled by persons other than the child until a date on which the Trustees deem appropriate, either in their own judgem
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