Trust Planning in Cheshire

Trusts can form a key element of sound financial planning, but many people are unsure of the benefits they offer. At Hartey Wealth Management, we are experts in trust planning in Cheshire. Read on to understand how trusts work, the different types available and their advantages.

What is trust planning?

Trust planning is defined as the process of setting up and managing a trust.

Legally binding arrangements, trusts involve a trustee holding assets on behalf of selected beneficiaries, which may include property, investments or cash. Trusts are designed to achieve a specific tax, estate or financial goal. They are often employed to control asset distribution, reduce inheritance tax (IHT) or to prevent beneficiaries mismanaging wealth.

Different types of trust explained

Common types include interest in possession (IIP), bare and discretionary trusts. IIP trusts involve beneficiaries having an automatic and immediate right to income from a trust, without owning the capital. However, a bare trust’s beneficiaries have absolute right to both income and capital when they turn 18. Discretionary trusts give power to the trustees, awarding them full discretion on how they manage and distribute capital or income among the trust’s beneficiaries.

Exploring the benefits of trust planning

There are many circumstances in wealth management where trust planning is beneficial. It can help protect valuable assets and control how beneficiaries receive them, avoiding risks to wealth like irresponsible spending. Some trusts can reduce IHT and help manage income tax payable by beneficiaries. Trusts can also avoid probate as they offer more efficient, private and faster asset distribution upon death.

When is trust planning crucial?

Trust planning is vital for individuals with substantial assets they will leave behind and those who own a business who wish to ensure succession. Planning is also key when people wish to control how their wealth is passed on to beneficiaries and protect specific assets for children.

Do you need assistance with trust planning in Cheshire?

With extensive experience in trusts, we offer a personal service that promotes full transparency while offering unbiased advice. For specialist support with trust planning in Cheshire, contact our team at Hartey Wealth Management.