Following on from my recent blog, Why Trusts Are Still One of the Smartest Estate Planning Tools, I'm now diving deeper into the questions clients ask most often about how trusts actually work. Whether you’re considering setting one up, reviewing an existing arrangement, or simply trying to understand the benefits, these frequently asked questions will help you gain confidence in making informed decisions about your estate planning.
Are trusts expensive to set up?
Not necessarily. Costs vary depending on complexity, but for many families, the tax savings and protection far outweigh the initial cost.
Do I lose control of my assets?
No, you can’t personally benefit from assets in a trust, but you can act as a trustee and help manage them.
Will a trust stop me paying care home fees?
Not automatically. There are strict rules to prevent avoidance. However, trusts in Wills can help protect part of your estate for future generations.
Can I change a trust later?
Some trusts are flexible (like discretionary trusts), while others are fixed. Good advice at the start ensures you choose the right type.
Do trusts only benefit wealthy families?
No. Trusts can be useful for anyone who wants to protect assets, plan for care costs, or manage inheritance tax efficiently.
How long does it take to set up a trust?
It depends on complexity, but most trusts can be established within a few weeks with the right advice.
Are trusts private?
Yes. Unlike Wills, which become public after probate, trusts generally remain confidential.
If you have any further questions about Trusts, please don't hesitate to get in touch.