Trusts in Wills. What are they ..

What does a Trust mean in a Will .?

The testator is handing his assets over into a trust which is administered by the chosen trustees who decide when and how much can be distributed to beneficiaries, usually guided by a Letter of Wishes made by the testator to compliment his will.

see WHAT IS A WILL TRUST? - Scottish Widows (pdf file)

The testator is handing his assets over into a trust which is administered by the chosen trustees who decide when and how much can be distributed to beneficiaries, usually guided by a Letter of Wishes made by the testator to compliment his will.

 

see WHAT IS A WILL TRUST? - Scottish Widows

What is the purpose of this . ? Is it to bypass probate .

What is the purpose of this . ? Is it to bypass probate .

I thought the normal reason was to have a trusted person who would, in effect, manage the money on behalf of the beneficiary. This would typically be because the beneficiary was either too young to manage the money, or the person leaving the money was worried that the beneficiary would blow it all on drugs and loose women if left to their own devices.

I thought the normal reason was to have a trusted person who would, in effect, manage the money on behalf of the beneficiary. This would typically be because the beneficiary was either too young to manage the money, or the person leaving the money was worried that the beneficiary would blow it all on drugs and loose women if left to their own devices.

This not correct

This not correct

If a couple own their house as 'tenants in common' rather than joint owners, at the death of the first, their half of the property may be left in trust so the survivor, in effect owns only their own half. if the survivor then needs care, only their half can be used to pay for it. That's one explanation, there are others I'm sure.

Children of parents A and B could lose out on their inheritance if the surviving parent B remarries or changes their will. If A has created a Trust and willed their assets to a trust that benefits the children, on the death of B the children will get A's assets whatever B decides.

B would continue to live in the house but it is half theirs and half the Trusts.

The trustees of the Trust could be anybody including the children, or someone who is responsible enough to look after the interests of the people named in the Trust.

There are dozens of other reasons for creating Trusts

What is the purpose of this . ? Is it to bypass probate .

Not sure on that, I'm not an expert. A friend of a friend (who is a special needs person) is a beneficiary of her late father's trust will. The trustees, her brother and sister, can, at their discretion, allocate her sums of money if she needs it to help with her living expenses, holidays etc, but at a level that wouldn't affect her benefits.

http://www.which.co.uk/money/wills-and-probate/passing-on-your-money/guides/will-trusts-and-lifetime-trusts

A trust is a vehicle to stop people getting the money.

It can stop the taxman getting at it, it can stop the recipient getting at it.

I always imagine it as a bank account that can only be accessed under specific circumstances.

If a couple own their house as 'tenants in common' rather than joint owners, at the death of the first, their half of the property may be left in trust so the survivor, in effect owns only their own half. if the survivor then needs care, only their half can be used to pay for it. That's one explanation, there are others I'm sure.

This is correct.

This is correct.

Well, it is an example of one being used, but it is hardly a definition.

Well, it is an example of one being used, but it is hardly a definition.

Yes I could do with a good definition. I will Google it.