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4th July 2016
Benefits of Trusts

Trusts have always been a very useful tool in the financial planning of clients’ affairs. There are a number of different types of Trust which are appropriate for individual situations.

Here we outline some of the primary reasons why clients might consider setting up a Trust:

  1. Protecting assets: Trusts are useful if you are looking to protect family wealth from possible marriage breakdown or from those who might influence beneficiaries, or if you are looking for protection against creditors.
  2. Controlling distributions: If you think there may be issues with your beneficiaries directly owning significant assets (maybe they are children or spendthrifts), a Trust enables assets to be distributed to them over time.
  3. Managing assets: While you are alive, you can set up a Trust for your beneficiaries and manage the assets for them if you think they do not have the capability to do so themselves. After you have gone, the appointed Trustees can continue the management for your beneficiaries.
  4. Avoiding probate: Assets held in a Trust fall outside your estate on death and so do not require probate or payment of probate fees. This may become more significant if government-proposed changes to probate fees are brought in. It also means fewer delays after death, as the assets in the Trust are not caught up in the often lengthy probate process.
  5. Avoiding compulsory succession: If you think there is a chance that your potential beneficiaries may challenge your Will as they may consider themselves to have been unfairly treated, a properly drafted Trust can help avoid challenges to your wishes in your Will.
  6. Helping charity: A Trust can easily be set up with the aim of providing gifts to charity.
  7. Providing privacy: Post death, your estate goes through probate which becomes a public document, detailing the assets in your estate. A Trust is private and confidential and can be used if you wish to keep this information from the public record.
  8. Tax efficiency: Suitable planning and use of relevant Trusts can help save paying an unnecessary amount of tax prior and post death, which can mean that a greater amount is passed down to your beneficiaries.


Trusts are not expensive; they can save money and provide peace of mind. If you would like to know more or think setting up a Trust might be appropriate to your situation, please do not hesitate to contact us.