Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • rosey67
    • By rosey67 12th Jan 19, 3:56 PM
    • 2Posts
    • 0Thanks
    rosey67
    Advice needed wills and discretionary trusts
    • #1
    • 12th Jan 19, 3:56 PM
    Advice needed wills and discretionary trusts 12th Jan 19 at 3:56 PM
    Hi my situation is that i have two sons who get equal shares to my estate (mainly my house)in my will.
    My one son is on means tested benefits and has told me that what i leave him will be counted as capital and his benefits will stop.

    He suggests i amend my will to make his share go into a discretionary trust with him as trustee and his
    daughter and granddaughter as beneficiares. His daughter is prone to substance abuse and would blow it and his granddaughter is only 5.

    Is it as easy as me amending my will to say that share i want putting into a discretionary trust and naming trustee and beneficiares or is there more to it.

    Secondly my son who is trustee will be executor what does he have to do to set this kind of thing up when my will is executed (i try to prepare him beforehand so he doesnt have get overwhelmed in a time of emotional distress).

    If anyone could give advice or another way that i can gift my son it would be greatly appreciated as i know very little about trusts.
Page 1
    • xylophone
    • By xylophone 12th Jan 19, 5:52 PM
    • 28,908 Posts
    • 17,509 Thanks
    xylophone
    • #2
    • 12th Jan 19, 5:52 PM
    • #2
    • 12th Jan 19, 5:52 PM
    You will need to consult a solicitor expert in Wills and Trusts.

    https://www.step.org/for-the-public

    See also

    https://www.gov.uk/trusts-taxes/trusts-and-income-tax
    • Sea Shell
    • By Sea Shell 12th Jan 19, 5:59 PM
    • 1,341 Posts
    • 2,458 Thanks
    Sea Shell
    • #3
    • 12th Jan 19, 5:59 PM
    • #3
    • 12th Jan 19, 5:59 PM
    I'd leave the will as it is. If your son on benefits no longer needs them after any inheritance, then surely that's good news for him and the taxpayer.

    That's assuming you don't need to sell up to pay for your own care in the future.
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow "
    • HappyHarry
    • By HappyHarry 12th Jan 19, 6:01 PM
    • 908 Posts
    • 1,333 Thanks
    HappyHarry
    • #4
    • 12th Jan 19, 6:01 PM
    • #4
    • 12th Jan 19, 6:01 PM
    Hi my situation is that i have two sons who get equal shares to my estate (mainly my house)in my will.
    My one son is on means tested benefits and has told me that what i leave him will be counted as capital and his benefits will stop.

    He suggests i amend my will to make his share go into a discretionary trust with him as trustee and his
    daughter and granddaughter as beneficiares. His daughter is prone to substance abuse and would blow it and his granddaughter is only 5.

    Is it as easy as me amending my will to say that share i want putting into a discretionary trust and naming trustee and beneficiares or is there more to it.

    Secondly my son who is trustee will be executor what does he have to do to set this kind of thing up when my will is executed (i try to prepare him beforehand so he doesnt have get overwhelmed in a time of emotional distress).

    If anyone could give advice or another way that i can gift my son it would be greatly appreciated as i know very little about trusts.
    Originally posted by rosey67
    Without meaning to being rude, if your son owns half a house in assets, why do you think he should be entitled to benefits paid for by people with far less assets?

    If you are determined to do so, follow xylophone's advice above.
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
    • rosey67
    • By rosey67 13th Jan 19, 10:41 AM
    • 2 Posts
    • 0 Thanks
    rosey67
    • #5
    • 13th Jan 19, 10:41 AM
    • #5
    • 13th Jan 19, 10:41 AM
    Thanks xylophone i thought i would probably need a solicitor. Was just hoping someone might read this who had already made a will trust or had experience of them and could give me a few pointers i.e the information solicitor will need, amount it costs if it makes the will complex e.t.c.
    • xylophone
    • By xylophone 13th Jan 19, 1:57 PM
    • 28,908 Posts
    • 17,509 Thanks
    xylophone
    • #6
    • 13th Jan 19, 1:57 PM
    • #6
    • 13th Jan 19, 1:57 PM
    We have a family Will Trust.

    You need a solicitor as I explained above. You will need to pay the solicitor's fees which in our experience is some hundreds of pounds an hour.

    The complexity is in the administration/taxation of the Trust for which the Trustees are responsible.

    • kidmugsy
    • By kidmugsy 13th Jan 19, 3:19 PM
    • 12,480 Posts
    • 8,846 Thanks
    kidmugsy
    • #7
    • 13th Jan 19, 3:19 PM
    • #7
    • 13th Jan 19, 3:19 PM
    Running a discretionary trust for a sustained period can be a real pain, and they can end up paying a lot of tax. Be sure that your solicitor gives you the picture on this.

    One conclusion might be that they will often be too pricey for comparatively modest sums. I have never had any success on the internet at getting a professional to give me a guideline on what "modest" might be, so I'll just suggest what a reasonable comparison might be. I suspect that many DTs are set up in wills to receive the Nil Rate Band for inheritance tax, which is currently 325k. You might like to ask yourself whether your sum would be modest compared to that.

    P.S. There is also a forum on Death, Wills and Probate (or something like that). You might like to check it.
    Free the dunston one next time too.
    • Heedtheadvice
    • By Heedtheadvice 13th Jan 19, 10:47 PM
    • 1,159 Posts
    • 568 Thanks
    Heedtheadvice
    • #8
    • 13th Jan 19, 10:47 PM
    • #8
    • 13th Jan 19, 10:47 PM
    I concur with X and K.
    I too have similar experience.
    Consider if the solicitor not only sets up the will but is also a trustee. There are many advantages in that approach such as professional knowledge, skills and expertise in setting up the trust, running the trust not least 'managing' the investments and dealing with tax (trust income and capital gains).
    Biggest downside is cost. See above posts. Costs for amending the will, setting up the trust etc - all the things that are the above advantages cost.
    It is certainly not easy for someone with no experience or knowledge to be a trustee - and it is a considerable responsibility.


    Consider the sum involved to be invested - half the house. What income could that produce that less costs and tax goes to the beneficiaries. Would it even cover the cost of the professionals modest fees of say under 1000 per annum?

    If the house value warrants that then would the benefits situation really be an issue.....or indeed should it morally?
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

62Posts Today

1,605Users online

Martin's Twitter