Why older people should make a trust
What is a trust ?
A Trust can be established in your parent’s lifetime, or by their Will
Trusts are there to provide income to others in specific circumstances
Types of Trusts
1. Life Interest Trust
This may be where your older relative might want to provide income rather than capital to a beneficiary:
For example, in a Will if they are in a second marriage with children only from their first marriage, they may want to provide income for their spouse and preserve the capital for their children
2. Discretionary Trusts
These allow the Trustees to use their absolute discretion as to whether to benefit a member of a class of beneficiaries. The decision is entirely theirs
For example, this may be useful where your parent has a child on benefits and they don’t want to give them an absolute interest under their Will which would result in the reduction or removal of benefits
Michael Swaden co-founded Manuel Swaden with Jeremy Manuel in 1989 before which he had spent some years developing a civil litigation practice in the West End. For the past 10 years, he has focused on providing specialist advice to individuals and families as head of the firm’s Private Client department.
Michael has developed an extensive practice in the preparation of wills and the administration of estates as well as the preparation of lasting powers of attorney and general advice for elderly clients. Michael is noted for his sound practical advice and his caring approach. www.manuelswaden.co.uk
Michael can be contacted on [email protected] or 0207 431 4999
www.direct.gov.uk/en/MoneyTaxAndBenefits