Trust Administration & Creation
Our Wills and Probate team can advise on the creation of trusts and all aspects of trust administration including responsibilities and power of trustees, dealing with legacies to minors, protecting assets from possible creditors and taxation of trusts. We also advise on the use of trusts for tax planning purposes.
Personal Injury Trusts
If you have been awarded damages for a personal injury then you should consider setting up a Personal Injury Trust (PIT).
The danger for you is that if, now or in the future, you receive benefits either from the Department for Work and Pensions (DWP) or the local authority which are subject to means testing, then the amount you receive will be taken into account and you may lose the benefits to which you might otherwise be entitled.
A PIT puts the amount received into safekeeping, where it should not be taken into account for state benefit assessment purposes. The means-testing regimes mean that capital awards placed in a Trust are ‘disregarded assets’. Without the creation of a PIT, you could actually be worse off for having been awarded damages
It is important to note that a Personal Injury Trust structure does not remove the funds from the beneficiary’s estate for Inheritance Tax (IHT) purposes, but could offer additional protection for the beneficiary’s family in the future.
We, at Coles Miller Solicitors LLP, have dealt with the creation of numerous PITs for clients who have been awarded damages for Personal Injury and can advise on all aspects of PITs.
Property Trust Wills
You are concerned that your property would have to be sold to meet the cost of such care.
It is possible to prevent this by making Property Trust Wills. Property Trust Wills contain a provision that upon your death your share of the property can be held upon trust for your children or other beneficiaries, whilst allowing your partner to live in the property for his/her lifetime. In this way you can pass your share of the property to your children or other beneficiaries and at the same time protect your partner.
Another benefit of Property Trust Wills is that, in the event your spouse/partner were to re marry or enter into a Civil Partnership after your death, your share of the property would be preserved for your children or other beneficiaries. Marriage or entering into a Civil Partnership automatically revokes a Will. Therefore if your partner does not make a new Will following any subsequent marriage or Civil Partnership, his/her new partner and family may benefit from your share of the property.
Make An Enquiry
Meet The Team
Chartered Legal Executive