Why place your property into trust?

Most people want to ensure that, when they die, their assets pass to their children or other chosen beneficiaries.

 

Although the general advice is to have an up to date Will that specifies where assets are to go, lawyers say property owners may feel it does not offer enough protection.

 

Helen Biglin, a partner at regional firm BHP Law and the head of its wills, trusts and probate department, explained: “Family make-up is often complicated and disputes over property when someone dies are not uncommon.

 

“Homeowners may be faced with a situation where there are children from a second marriage, or they may simply wish the assets they have worked for, such as the family home, be protected for the benefit of their chosen beneficiaries.”

 

Helen recommends people set up a trust during their lifetime into which their property can be placed.

 

“Placing your property into trust should ensure that, ultimately, it passes to the people you want after your death, according to the terms of the trust,” she explained.

 

“If the inheritance is due to pass to a vulnerable beneficiary then it can be protected by the trust and held for them until a more appropriate time.

 

“If you wish to benefit a surviving spouse and partner but also have children from a previous relationship that you would like to benefit, then the trust can be used to protect their intended inheritance.”

 

Helen has reassured homeowners that they would be allowed to remain living in the property that they put into trust and that, should they choose to move, the money can be used to purchase another property.

 

On choosing trustees, she advises selecting trusted people as well as an independent trustee, such as a professional person, who can ensure the owner’s position and wishes are safe guarded.

 

She added: “On your death, the house or the money from the trust would pass in accordance with the terms of the trust, rather than as part of your estate to be dealt with under your will. This can often make the probate process less complicated and will hopefully avoid family disputes.”

 

For more information, Helen can be contacted on (01325) 466794.