Discretionary Will Trusts
At Bright Solicitors, we specialise in guiding clients through the process of setting up and managing discretionary trusts, ensuring your wishes are fulfilled while maintaining control over your estate.
What are Discretionary Trusts?
A Discretionary Trust is a legal arrangement where the settlor transfers assets to the trust. The settlor appoints trustees who have full discretion over how those assets are distributed among beneficiaries. The trustees are not bound by fixed shares. They decide, based on the beneficiaries' needs and circumstances, who will receive benefits and in what amounts.
The flexibility of discretionary trusts allows better adaptation to changing personal situations and financial needs. This makes them a popular choice for family wealth management, asset protection, and tax efficiency.
Why Choose Us?
At Bright Solicitors, we understand that every family’s needs are unique, and our experienced team is dedicated to providing personalised advice and support for Discretionary Trusts. Whether you're looking to protect your assets or ensure your loved ones are cared for, our solicitors will work closely with you to create a solution that aligns with your wishes.
Our team of Discretionary Trust Lawyers offer upfront, transparent costs, with no hidden extras.
The prestigious Legal 500 has awarded Bright Solicitors with an outstanding client service award, showcasing our commitment to excellent service across all areas of our firm.
Discretionary Trust Lawyers | Our Expertise
Our team of experts in Discretionary Trusts provides the following services:
- Trust Creation: We assist with the creation of Discretionary Trusts, tailoring them to suit your individual circumstances.
- Asset Protection: We help to protect your assets for future generations.
- Trust Administration: We guide trustees in managing the trust effectively, ensuring compliance and proper distribution of assets.
Get in Touch
For expert legal advice with the creation and administration of Discretionary Trusts, contact Bright Solicitors. Our experienced team of Discretionary Trust Lawyers will guide you through the process and help you achieve the best possible outcome.
Call us at 01752 388883 or Email us at PrivateClient@brightllp.co.uk to arrange a consultation.
Useful Information on Discretionary Trusts
Discretionary Will Trusts provide a solution for people who cannot decide how to distribute their estates in a Will. These trusts are especially beneficial for business proprietors. However, they also work well in situations that require flexibility, protection, or adaptation to changing circumstances.
How Does a Discretionary Will Trust Work?
When you establish a Discretionary Will Trust, you give your Trustees the responsibility to make decisions after your death. Guided by your wishes and considering the circumstances at the time, they have the flexibility to manage and distribute your estate in ways that benefit your family and business.
Choosing the Right Trustees
Selecting the right Trustees is crucial. Choose individuals you trust to make important decisions on your behalf. They should act in the best interests of everyone involved, ensuring your estate is handled responsibly and effectively.
After your death, your Trustees will meet with the appropriate members of your family and professional advisers. They will have a clear understanding of the circumstances surrounding your business, family, and the relevant tax laws at the time. With your wishes in mind, they will decide how to administer your discretionary trust.
Managing Business Interests and Inheritance Tax Relief
For example, your Trustees may choose to retain business interests that qualify for 100% Inheritance Tax relief within the discretionary trust, along with an amount equal to your nil-rate band for Inheritance Tax purposes. They may then appoint the remainder of your estate to your surviving spouse, either outright or through life interest trusts, to take advantage of the spouse exemption.
Making Appointments Within Two Years
If the Trustees make appointments out of the trust within two years following your death, they can read those distributions back into your Will for Inheritance Tax purposes. For a married couple, by effectively using the nil-rate band, spouse exemption, and business property relief, no Inheritance Tax should be due on the first death or within the first 10 years of the trust, provided it is kept active.
In your confidential note of wishes, you can specify how you want your estate and business interests handled. For example, you might want the Trustees to retain them and pass them on to any children involved in the business. Alternatively, you may decide that, after your death, the business should be wound up and sold.
If any of your children face financial or matrimonial issues at the time of your death, the Trustees can retain assets in trust. They can distribute the assets to your children once their issues are resolved.
