Different types of trusts and how to use them

Different types of trusts and how to use them

Trusts are an effective planning tool that when used correctly can mitigate large tax bills as well as smoothing the process of passing wealth on by avoiding probate. However, when set up incorrectly these structures can lead to problems or simply fail to achieve the financial planning goals they were intended for. Getting a trust right is very important and there is no ‘one size fits all’ solution. The type of trust you use will depend on your situation, what you are hoping to achieve from using a trust and the amount of flexibility you require.

Why create a trust?

There are many reasons people use trusts, but easily the most common reasons are:

Avoiding Probate

Once assets are placed in trust, they are no longer part of the settlor’s estate and there is no requirement for probate upon the death of the individual

Read more at https://hoxtoncapital.com on August 11, 2021.