Inheritance Trusts

Publications > Trusts and Wills Articles

Law Commission Review Of The Law Of Trusts
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Abolition of Gift Duty and Your Trust
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Trust Overview
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Key Steps In Establishing An Asset Protection Programme Using A Family Trust
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Getting The Power Of Appointment Right
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Choosing The Right Trustee
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The Importance Of A Letter Of Wishes For A Discretionary Trust
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Inheritance Trusts
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Managing Your Trust – Trustees Must Act Jointly
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Trust Documents – What Do You Have To Disclose?
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Rights Of Beneficiaries
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Tax Residency And Tax Treatment Of Your Trust
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Trust Administration Checklist
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Distributions From Discretionary Trusts
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The Duties, Office And Powers Of A Trustee

 

Inheritance Trusts

The average Will for a parent will often remain one where a spouse leaves everything to the other with a gift over to children and a provision for substitution of grandchildren.

While some clients have decided that a Trust is not appropriate for their circumstances, many are considering whether it would be wise to form Trusts for their children or encourage their children to set up their own Trusts. This then affords the parents the opportunity to leave a child’s share in the survivor’s Estate directly to a Trust in which that child is the primary discretionary beneficiary and where sooner or later the particular child will control the Trust through the power of appointment.

The advantages include:

  • Ring fencing assets for a particular child and his/her family
  • Better protection against creditors of the child as Trusts created by parents for a child are far more protected than Trusts created by a child
  • Avoiding the necessity of a child, who wants to transfer inherited assets to a Trust having to sell those assets to a trust at market value and then under current legislation embark upon a gifting programme to eliminate the debt. A simple bequest to a Trust for a child will avoid that consequence
  • Giving the surviving 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 deemed appropriate for the child to take control

 

There may also be possible residential care benefits in the future as no assets will come into the child’s hands.

For further information or assistance in setting up an Inheritance Trust, please contact Tony Fortune or Katherine McCarthy

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