WHY MIGHT I NEED A TRUST?
Trusts continue to provide practical solutions to problems in ordinary people’s lives as opposed to giving the beneficiary an outright gift.
FUTURE FINANCIAL DIFFICULTIES:
The beneficiary of a gift will own the asset outright and it will form part of their estate. This means it could be taken into account in the event of any future bankruptcy or insolvency process and may be lost to creditors.
There are also other, more common, financial pressures. The beneficiary may become unemployed, or could be forced to take a pay cut or they may fall ill. As a consequence, this might make them feel pressured to sell the assets in order to consolidate debts or to help their financial situation.