14 January 2025

What is a Will Trust, and Why is It So Important?

A Will Trust is a legal arrangement that allows you to place assets such as property, savings, or investments into a trust, which is then managed according to your wishes. Unlike a simple Will, a Will Trust offers enhanced protection, ensuring your assets are safeguarded for your loved ones and kept within the family.

At Eminence, we are proud members of The Society of Will Writers and STEP-qualified professionals. Having written countless Wills, we understand the critical role a Will Trust can play in effective estate planning.

Protecting Against Life’s Uncertainties

Life is unpredictable, and without the right measures in place, your assets could be at risk. Here are some common scenarios where a Will Trust can protect your legacy:

  • Remarriage After the First Death: If the surviving spouse remarries, assets passed directly to them could end up with their new spouse and, potentially, their children. This could leave your children from the original marriage with nothing. A Will Trust ensures your assets are protected and distributed according to your wishes.
  • Care Home Fees: If the surviving spouse needs long-term care, their assets (including those inherited from you) could be used to pay for care fees, significantly reducing the inheritance left for your children. A Will Trust can safeguard these assets from being depleted.
  • Children’s Inheritance: Without proper planning, your children’s inheritance could be lost in divorce settlements, creditor claims, or other unforeseen circumstances. A Will Trust allows you to place conditions or protections on how assets are distributed.

How a Will Trust Works

When you set up a Will Trust, you appoint trustees who will manage the assets on behalf of the beneficiaries. You can specify how and when the assets are distributed, for example, to your children when they reach a certain age or under specific conditions.

There are various types of Will Trusts, including:

  • Life Interest Trusts: Protects the surviving spouse’s right to live in the family home while safeguarding the capital for the children.
  • Discretionary Trusts: Provides flexibility for trustees to manage the assets based on circumstances at the time.
  • Property Protection Trusts: Ensures your property is preserved for your chosen beneficiaries.

Why Planning Ahead Matters

Many people delay making a Will or setting up a Trust, but the earlier you plan, the better. A Will Trust ensures that your wishes are honored and provides peace of mind that your loved ones will be taken care of no matter what happens.

Failing to act could mean:

  • Assets going to unintended beneficiaries.
  • Increased inheritance tax liability.
  • Disputes among family members.

Real-Life Scenarios: The Problems We Solve

Here are some examples of how a Will Trust could make all the difference:

  1. Protecting Family Assets:
    John and Sarah have two children. After John’s passing, Sarah inherits all their assets. Years later, Sarah remarries and eventually passes away. Without a Will Trust, her new spouse inherits the estate, leaving John and Sarah’s children with nothing. A Will Trust would have safeguarded the children’s inheritance.
  2. Guarding Against Care Fees:
    David and Jane’s property is their main asset. When David passes away, everything goes to Jane. Unfortunately, Jane later requires full-time care, and the home is sold to pay for care fees. By placing the property in a Property Protection Trust, the home would have been preserved for their children.
  3. Ensuring Equality Among Children:
    Mark has children from two marriages. Without a Will Trust, his assets are split unevenly, creating conflict. A Discretionary Trust would allow Mark to ensure a fair distribution.

The Big Question: How We Can Help

At Eminence, we specialise in creating tailored Will Trusts to meet your unique needs. Whether you’re looking to protect your property, safeguard inheritance for your children, or minimise tax liability, we can guide you every step of the way.

With our expertise and qualifications, you can rest assured that your estate planning is in safe hands. We’ll work closely with you to ensure your assets are distributed according to your wishes and remain protected for generations to come.

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