This is a question I get asked almost every time. If you can imagine that your Trust is an empty Safe – it will only have contents after you die. You leave the “Keys” with your instructions. So the answer is a big “NO”

Ok- some examples we use to explain.

Let’s say you wish to leave £20,000 to your grandson who is now age 11. You may get an option to give this at age say, 23 or 25.  But what is he developed an addiction, alcohol, drugs or gambling etc. Would it be your wishes to leave him the finances to make his life (and his parents) more miserable. What if you could ensure that he would be clean, mature enough to receive money.

If someone goes into Business and creditors knock on their door- your funds can be taken off them. Your Trust can protect this eventuality. 

If your beneficiary is assessed for care, your legacy can be taken into consideration to pay for their care.  Again- a well written Trust will protect. ‘

That’s the beauty of Discretionary Trusts in a Will.  The Will directs assets to Your Trust. You leave instructions for that asset (and all else) on how you believe TODAY that this should be distributed. Any time after, you can simply re-write the instructions with updated details- you never need to re-write the will.  

Here’s a simple example. You want to ensure you no 3 daughter is financially looked after. However, later in life, she is in receipt of Benefits. If you had left her money direct, it could affect her payments.   The solution – Properly written Trusts. 

Say you own a Farm or Business or a House and wish to leave this to your oldest son – but you have concerns as he is married.  Things can change in any marriage. Sad but true. So, any divorce settlement could affect not just your son’s fortunes but also your grandchildren’s.  This is a major concern for us as parents. 

Yes, this is a much-misunderstood terminology. When say, a husband and wife buy a house together, (or any couple) they may be offered which type of ownership they prefer.  Ownership can be Joint or Tenants in Common.  

 Joint Ownership means that husband dies- wife automatically owns 100% of the house.  And vice versa. Now, once this House is 100% owned by one person – it becomes attackable by the usual possible threats. 

Tenants in Common- means that both own a half each (for example)

So, Husband dies – he can leave his half to his chosen beneficiaries while still protecting the Partner. 

Confused?  Let’s look at where this can be of benefit. 

If someone owns all of their home and they are assessed for care, their home is now at risk (In N. Ireland if you have assets above £23,250- then you will pay for your care costs) 

However, o proper planning can save many thousands of Pounds. 

PS- Your savings are also at risk and typical Nursing Home Costs run at £1000-1500 per week...

As another example, let’s say, you are married and own your house (with or without mortgage) 

You have 2 children, and you each want your spouse to own this house until they pass it to the kids.  So, wife passes and after a few years, Hubbie meets a new love, who also as 2 children from her previous marriage. Hubbie dies and this new wife inherits the house. Who does she now leave this house to when she draws up her new will?  This is called sideways Inheritance. Not something easily discussed but the implications for your children are dire. TIC ownership with the correct Trusts can ensure that your wishes are administered exactly as you expected- with no surprises.