Putting Assets Into A Trust.

[Metahowell]

We are considering putting our assets into a Trust with Universal Wealth Preservations. Lots of reasons, mainly for making things easier for the family when we die. Would love to get feedback from other people who have done this.
Thanks in advance.

[Zacs-Master]

In lieu of your specific request:
http://boards.fool.co.uk/these-are-also-known-as-asset-protection-trusts--12932139.aspx

[Peter Pedant]

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Go on taking advice - I would take the view that trusts as a tax vehicles have had their day. I am not sure that a settlement trust will not make things easier in terms of costs and ease for the lucky beneficiaries.

It does stop them quarrelling in front of you tho

[Peter Pedant]

agree strongly with ZM and his post

I didnt think of care home fees

[EDDIE51]

Good advice above , remember these trust companies main motivation is to make themselves a nice fat profit rather than to help you.

[dzug2]

Well I haven't done it - but I've considered dong so and so far decided against.

'Making things easier for the family' is a bit of a flimsy reason IMV - I'm not convinced it does and it's certainly at the cost of making things more difficult now for your trustees who have to cope with running the trust (or paying someone handsomely to do so). And it's not unknown for trustees to fall out.

I'm also - for reasons I can't put my finger on - a little uneasy about this particular company. I came across them though a leaflet drop in the local paper (spam in all but name). They appear to be an American franchise - whilst they should be attuned to UK conditions I'm not wholly convinced. Does it really need to be sold like home delivery pizza?

So - make sure you know what you are actually letting yourselves into and that you actually have reasons to do this. The slick salesman may not give the whole picture

[Zacs-Master]

Avoidance of care home fees is their raison d'être.

[Peter Pedant]

I was the subject of a wills settlement trust and wouldnt dream of using one myself.

[Metahowell]

Thank you so much ZM for your very useful comments. I think we will go to a local Solicitor for a second opinion.
Would it be possible for you or Peter to point out a few of the drawbacks of putting some assets into trust? - just to guide us on our way. It seems that the Wealth Preservation Trust leaves you in complete control until your death and all original decisions are completely flexible.
Thanks

[themas]

Take note of the solicitor's comments in the link with ZM's first post. Trust and trust law is a very complex area - unless dealt with by a real expert in this area of law it is quite possible that something could go wrong and you could end up worse off than if you had never done it.

For what it's worth (& I know nothing about the type of trust you are talking about) if I was considering setting up any kind of trust I would insist on using a solicitor who was a member of STEP. I would certainly not do it through an organisation where a salesman was trying to persuade me to sign up.

[dzug2]

xx It seems that the Wealth Preservation Trust leaves you in complete control until your death xx

If you believe that then you don't understand what you are letting yourselves in for.

It's in the control of your trustees - even if that is you there are limits to what you can do, at least easily

[dzug2]

The company do claim to use STEP solicitors though - but they do seem to be more sales orientated than I would like

[Metahowell]

I am still listening to you all with great interest. Would Peter Pedant be prepared to tell me what problems he had as a beneficiary if I gave him my private email? (or maybe this is not allowed?)

[themas]

Meta - I can't answer for Peter, but I'm not sure that would really help you. You need detailed information on the pros and cons to enable you to make your own decision & I think you'll only get it from a STEP solicitor working for you (i.e. not Universal Wealth's STEP solicitors, who are only working for them.)

[Metahowell]

Very many thanks to you all. You have been a great help
Meta

[Peter Pedant]

Sorry me again
In view of the fact that you were going to take professional advice, my brain went into neutral

It was a wills trust [ settlement under a will ] - and there were issues over taxation of trusts and disposal of assets, and of course quarrelling and disagreeable beneficiaries -
who runs the trust and what their expenses are.

if you think about it, the whole shebang really.

So much so that in my will I have left assets absolutely
and if there is a difference in shares 40-60 or 51 - 49 or whatever, my heirs just have to lump it.


I agree with Dzug absolutely - if you think you can put assets beyond the taxman AND retain control - then you really do need advice from a profesisonal and not from us !