Why choose us to establish a discretionary trust: a discretionary trust, which is a legal arrangement, enables the owner of a life policy to give the policy to a trusted group of people, the trustees, who look after it. Then, at some time in the future, the trustees pass it on to beneficiaries chosen by the life policy owner.
The trustees have some discretion about how much each beneficiary will receive and when. A life policy looked after in this way is said to be "in trust". Any payment received from the policy is called the trust fund.
Discretionary trusts and their tax obligations are more complex to establish than a bare trust, but if properly implemented they can have a positive impact on your tax bill.
They have been utilised for many years by people wishing to pass on their assets to family members and lessen the heavy penalty of inheritance tax. A discretionary trust will help ensure the money paid out from a life policy will be paid to the right people quickly, without lengthy legal processes.
By placing your life policy in trust, you can stipulate to whom you want the proceeds to be paid. A trust controls when the money from the life policy is paid out. This can ensure, for example, children will receive financial support from the money, without having full access to it.
Coddan Formations Agency can help by offering expert advice in establishment of a discretionary trust. We provide a one-stop service for the establishment of your trust, whether you wish to protect your assets or pass on your estate to family members.
At Coddan, we are available to discuss any specific issues, no matter how complex they may be. We will discuss our services with potential clients in confidentiality, reviewing any query with an initial conversation in person, or by email, or by telephone, free of charge.