Trusts

Failure to make proper plans can mean that we leave behind a mess which has to be sorted out by the family at great expense and inconvenience at a time when they are emotionally vulnerable.

Many individuals seek to put order to their affairs by making a comprehensive will. Under this arrangement the Executors named in the will would apply for a grant of probate, take possession of the assets of the deceased and then distribute those assets according to the terms of the will.

These arrangements are perfectly in order but result in:

• High administration costs. often around 2% of the total value of the estate.
• Long time delays. Even a simple estate would normally take at least one year to be wound up.
• Often mean that considerable sums become payable in inheritance tax or estate duty.

The only real alternative to a will arrangement is to set up a trust structure during lifetime which, with careful planning, can operate to eradicate these delays, administration costs and taxes as well as giving a large number of additional benefits. For these reasons the use of trusts is increasing dramatically.