There is a persistent belief that Trusts belong only to the very wealthy. In practice, they are one of the most useful tools available to ordinary families building a considered plan.
Who should consider one
Anyone who owns or plans to own a home, holds around £100,000 or more in bank accounts or investments, or has large pensions, life policies, business or agricultural assets should consider a Trust as part of their planning.
What Trusts do quietly well
They allow you to control how assets are used after they pass out of your ownership. They separate legal ownership from beneficial ownership, which protects wealth in the hands of the next generation. And in the right circumstances, they take assets out of your estate for Inheritance Tax purposes.
What Trusts protect against
On first death, protection against a surviving spouse's remarriage and against the family home being assessed for care fees. On second death, at beneficiary level, protection against generational Inheritance Tax, divorce settlements, creditors, bankruptcy and future care fees.
What Trusts are not
They are not a mechanism for aggressive tax avoidance. Done well, a Trust is a piece of structural elegance, not a scheme, a quiet way of making sure what you have built continues to support the people you love.