A Guide to Setting up a Discretionary Trust with a Holdens Law Wills and Probate Solicitor

Lancaster solicitors, Holdens Law, are experts in giving you the peace of mind of knowing that your loved ones will be taken care of when you’re gone.

Trust planning is a way of transferring your assets to the control of someone else – called your trustees – who will manage these assets on your behalf in the best interests of those you want to take care of financially – called the beneficiaries. Trusts can be created either during a person’s lifetime or alternatively under their will.

You can read a general guide to Holdens Law Wills and Probate solicitor services here. In this article, we’ll take a closer look at the most flexible form of Trust, the Discretionary Trust.

Discretionary Trusts, the flexible way to plan your finances

There are many forms of Trust that operate to set rules, for example, some pay out money automatically when a young person reaches a certain age. However, Discretionary Trusts are far more flexible than this.

With a Discretionary Trust, the trustees have the power to make decisions about how the Trust income and/or capital are distributed. This includes what is paid out, whether income or capital or both, who it is paid out to, and how often it is paid. Trustees can also impose conditions on beneficiaries to ensure that the money they receive is used in the way that it was intended.

The benefits of Discretionary Trusts

Discretionary Trusts allow for changing circumstances, which you may not have been able to foresee when the Trust was first set up. For instance, it allows trustees to provide for grandchildren who may not have been around when the Trust was formed.

Discretionary Trusts are also a flexible and practical way to look after someone who is not able to look after themselves, such as someone with a disability or a degenerative disease, or someone who has a history of making poor life choices. By appointing your trustees to take care for these people, and act in their best interests, you can continue to provide help and support long after you are gone. A letter of wishes should be created to accompany your will and give guidance to your trustees, ensuring they know exactly how you want your assets to be handled.

Planning your Discretionary Trust

“Trusts are an effective way of making sure your loved ones are taken care of, both now and in the future,” explains Jennifer Larton , a Holdens Law Wills and Probate solicitor. “We can help you organise your affairs in a way that reflects your wishes and their best interests.

“To ensure that a Discretionary Trust is operated in accordance with your wishes, we will work with you to make those wishes as clear as possible. This is best done in writing with the document included in the Trust paperwork for future reference.

With this kind of professional Trust planning, you can rest assured that the people you Trust will take care of the people you love.”

Why you need local Lancaster solicitors to prepare your Trust

Trust planning is a very personal task that requires experience and understanding, a personal service and one to one care. With a professional insight, from approachable professionals, your local Lancaster solicitors, Holdens Law, will help you to clarify your plans and create a Trust that guarantees these will be executed exactly as you would want.

The taxation of Trusts is complex, and requires expert understanding. A Holdens Law Wills and Probate solicitor can help you structure your Trust to ensure your loved ones enjoy the maximum benefit from your funds.

To find out more about how expert Trust planning could benefit your family, friends and even your favourite charities, talk to a Wills and Probate solicitor at Holdens Law today on 01524 32484, or complete the contact form on our website.