Protecting future generations of your family is a natural priority when drafting a Will. However, a false assumption often made is that a standard Will alone guarantees that your blood relatives will be the sole beneficiaries of your estate. This is not the case, so how can you ensure that the inheritance you provide for them is itself safeguarded from future loss?
The solution is to make provision by leaving assets to beneficiaries via a Trust. One option is a Discretionary Trust, often referred to as a ‘bloodline’ Trust. Only the named beneficiaries identified in your Will would have access to the funds contained within any Trust that it establishes. The Trust also provides the utmost flexibility when it comes to beneficiaries receiving their inheritance.
Including a Trust in your Will can reduce the likelihood of your estate being exposed to claims by individuals and organisations not named in your Will. These might include claims by a former partner of your child in a divorce case, or from any creditors that your children may have if they are facing bankruptcy.
A further advantage to be gained from a bloodline Trust is to help minimise the impact of Inheritance Tax upon the assets you wish to leave to your family. This can allow your beneficiaries to have the use and enjoyment of their inheritance during their lifetimes, without it being classed as theirs for their own Inheritance Tax purposes.
The first step to take in setting up a bloodline Trust is to draft or amend your Will accordingly. Our Private Client team can assist in this process and answer any questions that you may have.