WHAT IS A WILL TRUST
A Will Trust is a trust that is created through a person’s Will, coming into effect upon their death.
Unlike Lifetime Trusts (or "inter vivos" trusts), a Will Trust is not active during the Testator’s lifetime.
Key Features:
Created by a Will: It only takes effect after death.
Managed by Trustees: Appointed in the Will to oversee the trust.
Assets are placed into trust: Instead of being distributed outright, assets are managed according to the terms of the Trust.
Often used to protect beneficiaries: For example, minor children, vulnerable adults, or those not financially responsible.
Common Types of Will Trusts
Discretionary Trust: Trustees decide how and when to distribute assets.
Life Interest Trust: One beneficiary (the Life Tenant) receives income or use of asset during their lifetime; the capita then passes to other beneficiaries.
Bereaved Minors Trusts: For children of the deceased, with specific Tax advantages.
18-25 Trusts: As with Bereaved Minors Trusts, these Trusts can only be established for children of the deceased and have specific Tax advantages.
Benefits of Will Trusts
Protecting assets for vulnerable beneficiaries and from risks such as means tested benefits and care.
Providing flexibility in estate distribution.
Mitigating inheritance tax, when used with proper planning.
Controlling how inheritance is used, particularly for minors or those with debts.
For any estate planning and probate enquiries in Bexhill, Battle, Hastings, Rye and all East Sussex please get in touch.
This message was added on Tuesday 3rd June 2025
