Yes, a trustee can be a beneficiary. However, it’s generally recommended to have at least one non-beneficiary trustee, especially if the trust gives the trustees significant decision-making power.

Will trusts can be tailored to your specific needs and estate. Here are some common uses:

• Provide income or property for your surviving spouse for their lifetime, with the assets then passing to your children from your marriages after their death.
• Fund education for your children and grandchildren.
• Provide for loved ones who are financially vulnerable.

Citywide Wealth can advise you on the best way to set up a trust to benefit those you want to inherit your wealth.

Will trusts are a valuable tool for effective estate planning. They can help you:

• Minimize inheritance tax and take advantage of available tax relief.
• Ensure your beneficiaries’ access to government benefits or state support isn’t affected by their inheritance.
• Protect your assets from creditors or divorcing partners.

They can also help you take advantage of inheritance tax relief available to your surviving spouse. By planning ahead with a will trust, you can:

• Benefit from inheritance tax business or agricultural relief, which might not be available after both you and your spouse have passed away.
• Place assets expected to increase in value outside of your spouse’s ownership, thus reducing their potential inheritance tax burden (e.g., land with development potential).
• Reduce the taxable value of your family home by splitting ownership between a surviving spouse and a trust.
• Get extra inheritance tax allowances if you or your spouse (or both) have been previously widowed.

Citywide Wealth can advise you on how a will trust can benefit your specific estate.

There are several types of will trusts, each with its own advantages and suited to different situations. The right type of trust for you depends on:

• Who your beneficiaries are (and whether they are minors)
• Whether you want to specify exactly what each beneficiary receives or give the trustees discretion
• What you want to achieve through the trust
• The complexity of your entire estate and how the trust will affect other aspects of it for tax purposes

Citywide Wealth works with you to understand your estate planning goals and offers tailored advice for you and your family. No two estates are the same, and this is true of trusts as well.

Taxation of will trusts is a complex area. Here are some key tax points to be aware of when setting up a trust:

Capital Gains Tax: Trustees are taxed at the higher rate (currently 20% on most assets, 24% on residential property) and only receive half the individual tax-free annual allowance. Transfers from the trust to a beneficiary also incur capital gains tax.
Income Tax: Beneficiaries pay income tax on any income they receive from the trust. If beneficiaries don’t have an automatic right to income from the trust, the trustees themselves may be subject to more income tax.

The tax rules governing will trusts are intricate. Because of this, it’s essential to have expert guidance.
Citywide Wealth can advise you on the best structure for your trust to ensure it’s as tax-efficient as possible.

You can include a will trust in your Will, which takes effect after your death. There’s usually a gap between the date of death and when the trust becomes operational, called the “period of administration.”

This typically takes a few months, but it could be years for particularly complex estates.