How to Safeguard Your Inheritance In Scotland 

Learn how to protect your inheritance with the use of a Discretionary Trust 

At Jones Whyte we have an exceptional team of Trust lawyers ready to assist you in setting up a Trust to protect your assets. Planning in advance is beneficial to ensure the preservation of your loved ones’ inheritance. By choosing our specialist Trust lawyers, you’ll receive tailored solutions, expert advice, and cost-effective services. 

Are you interested in protecting your inheritance with a Trust? In this blog, we’ll delve into: 

• • What is a Discretionary Trust 

• • The advantages of a Discretionary Trust – Estate Planning Tool 

• • How to set up a Discretionary Trust 

• • What our clients have to say 

• • Get in touch with us today 

• • FAQ’s 

What is a Discretionary Trust 

A Discretionary Trust (sometimes referred to as Asset Protection Trusts or Family Protection Trusts) is a versatile tool that can be used for Estate Planning. It is simply a legal arrangement designed to protect assets and provide tax benefits for the settlor and potential beneficiaries. A Discretionary Trusts allows you to have more flexibility over when and to who your estate is distributed.  

This is advantageous in situations where beneficiaries may not be in a position to manage their inheritance or are vulnerable, for example, those going through legal proceedings such as a divorce, disputes, or struggles with addiction. The appointed Trustees of the Trust can exercise discretion to adjust distributions based on beneficiary’s needs and circumstances.  

The advantages of a Discretionary Trust – Estate Planning Tool 

Typically, when an estate is being distributed the assets automatically become part of the beneficiary’s estate, which can potentially cause tax implications for them. However, a Discretionary Trust can help mitigate some of the tax implications by keeping the assets separate from the beneficiaries’ estate. With the Trustees having the power to decide how and when the beneficiary receives their inheritance, this can mitigate some of the inheritance tax implications. 

Moreover, a Discretionary Trust can protect assets from Third Parties. By placing assets within the Trust, they are no longer part of your estate but instead belong to the Trust. This can ensure that your assets are distributed to your beneficiaries providing a layer of security. 

Furthermore, asset held within a Trust benefit from not having to go through the Confirmation/Probate process, streamlining the estate distribution process to be faster and less expensive. 

In essence, Discretionary Trusts prove to be a useful tool for safeguarding Family Wealth, providing a mixture of flexibility, asset protection, and tax efficiency for those who are looking to secure their legacy and provide for their loved ones. 

How to set up a Discretionary Trust 

Setting up a Discretionary Trust requires the expertise of a solicitor to ensure a smooth process. The Trust will include a letter of wishes, definitively outlining your purpose and goals, which is crucial to ensuring your assets are shielded and distributed according to your wishes. This will provide you with the comfort and peace of mind knowing that your assets are in safe hands. 

Points to consider before setting a Trust up 

Before establishing a Trust, it’s important to consider a few key factors. This includes:  

• • Deciding and selecting Trustees who will oversee the Trust. 

• • Beneficiaries who will receive its benefits.  

• • Determining which assets to transfer into the Trust. 

What our clients have to say 

We have received positive feedback from clients who have set up Trusts to protect their inheritance. Here are some testimonials: 

“I have been impressed by this law firm, based on ten years of their management of our Family Protection Trust. My current case handler is professional, very thorough, dealing with every query promptly, efficiently and with great courtesy.” 

“Our experience with Gregg who was our consultant was first class. From our first meeting to the last he was informative and knowledgeable about our family trust and explained the whole process in a way that was easy for us to understand. Nothing was too much trouble when we either called or emailed with queries arising from our meetings and his response was very quick. In summary he made the whole process very simple. Many thanks to you Gregg.” 

“My wife Heather and I are greatly impressed with Jones Whyte solicitors and, in particular, the exceptional help and advice provided by their staff members Ross Anderson, Nicholas Wright, and Emma Blair. Their knowledge of Family Protection Trusts and associated matters is far greater than many other solicitors, and Mr Anderson and his staff have provided excellent customer service. We can highly recommend them.” 

Contact us now to begin safeguarding your inheritance 

Secure your family’s wealth and assets with confidence and peace of mind by taking proactive steps today. Reach out to our team of experienced legal professionals who are ready to support you every step of the way. 

FAQ’S 

Who can be a beneficiary?  

A beneficiary could be anyone – a person, charity or an organisation. 

What are the roles of the Trustees and the Settlor 

In a discretionary trust, the trust assets are held by at least one trustee who has the discretion to distribute income and capital to one or more beneficiaries. The settlor, the person setting up the trust, outlines their wishes in the trust deed, which guides the trustees in their decision-making process.  

Why set up a Discretionary Trust with Jones Whyte?  

By setting up a Discretionary Trust with Jones Whyte, you can ensure:  

• • Tailored solutions 

• • Expertise 

• • A client-focused approach 

• • Professionalism 

• • Cost-effective solutions 

What are the key advantages of a Discretionary Trust? 

• • Helps to mitigate some of the tax implications by keeping the assets separate from beneficiaries’ estate.  

• • Protects assets from Third Parties.  

• • Provides a layer of security.  

• • Streamlines the estate distribution process. 

Complete the form at the top of this page or call us now to book an appointment with an Estate Planning Consultant – 0800 292 2000