Double Trust Will
Discussion
Hello,
Looking for some advice. My Father sadly passed away last month. My Mother is still alive. I am an executor of his will. It seems that in 2019 they set up a Double Trust Will. They were sold this idea from a friend who had set one up. At the time they were expecting a large inheritance from My Grandmother but she ended up in a care home for four years and died last year aged 101.
My Mother owns a home worth approx £500k, no mortage or debts and ~200k in savings and investments shared between her and my late Father. Her pension income is adequate.
Is it worth keeping this set up given the fairly average financial situation? From the description it says it can be disbanded, not sure if that means it can also not be implemented.
Any pros and cons?
"What happens if the Trustees no longer wish to continue the Trust?
The survivor and the Trustees – or the Trustees after second death – can disband the Trust as they wish. The estate can then be distributed to the beneficiaries according to the Will."
https://willpowergroup.com/double-trust-wills/?cmp...
Looking for some advice. My Father sadly passed away last month. My Mother is still alive. I am an executor of his will. It seems that in 2019 they set up a Double Trust Will. They were sold this idea from a friend who had set one up. At the time they were expecting a large inheritance from My Grandmother but she ended up in a care home for four years and died last year aged 101.
My Mother owns a home worth approx £500k, no mortage or debts and ~200k in savings and investments shared between her and my late Father. Her pension income is adequate.
Is it worth keeping this set up given the fairly average financial situation? From the description it says it can be disbanded, not sure if that means it can also not be implemented.
Any pros and cons?
"What happens if the Trustees no longer wish to continue the Trust?
The survivor and the Trustees – or the Trustees after second death – can disband the Trust as they wish. The estate can then be distributed to the beneficiaries according to the Will."
https://willpowergroup.com/double-trust-wills/?cmp...
It looks to me as though executors/trustees will probably be able to do whatever you like if the documents were well drafted. However, you would IMO need professional advice before trying to dismantle the structure. A sensible starting point could be an initial conversation with the people who set it all up and then decide whether you want to use them again or go elsewhere.
One of the catches with trusts is it generally takes a certain amount of time, effort and expense to operate them, so unless there's significant cash in there (or other perceived advantage such as family control) you have to juggle cost vs benefit. Always remember the Chancellor can change future taxation of the trust at any time, which contrasts with absolute gifts and/or legacies that are "once and done".
One of the catches with trusts is it generally takes a certain amount of time, effort and expense to operate them, so unless there's significant cash in there (or other perceived advantage such as family control) you have to juggle cost vs benefit. Always remember the Chancellor can change future taxation of the trust at any time, which contrasts with absolute gifts and/or legacies that are "once and done".
Tim330 said:
From the description it says it can be disbanded, not sure if that means it can also not be implemented.
I think that's going to be one of the key issues. You might find that the wording of the will means a trust is automatically established upon death.I'd also question what the rationale was in doing the wills this way, to understand exactly what the benefits were supposed to be. Could not implementing the trust / disbanding the trust potentially leave individuals and / or the family as a whole worse off?
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