Trusts

Trusts are a flexible way to protect and manage assets for the benefit of others. They can be set up during your lifetime or through your Will to take effect after you pass away.

People choose to create trusts for various reasons, including:

• Providing for family members, including children, vulnerable beneficiaries, or those who may require long-term support.
• Supporting second families or complex family structures, ensuring the right people benefit at the right time.
• Protecting assets from future claims or risks, such as disputes or financial liabilities.
• Managing the long-term distribution of wealth, keeping control over how and when assets are passed on.
• Planning for inheritance tax, helping to reduce the overall tax impact on the estate.

At Frodshams, we help clients explore whether a trust is the right solution for their circumstances, providing clear advice on setting up and managing trusts with confidence.

Some people consider using trusts as part of their planning for future care needs. While trusts can offer protection for certain assets, the rules around care fee assessments are strict.

If a local authority believes that assets have been placed in a trust to reduce care costs, they may still include those assets in their financial assessment. This is known as ‘deliberate deprivation of assets’.

Trusts need to be set up for the right reasons and with the right advice. At Frodshams, we help clients understand the legal and financial implications of using trusts as part of their planning, making sure any steps taken are appropriate and fully informed.