Life Interest Trust
This is usually where on a second marriage you can protect the interest of the surviving spouse and the interests of any children from former marriages.
This can protect the interest of a child or adult who suffers from a physical or mental disability.
Declaration of Trust
A Declaration of Trust is put in place (usually for unmarried couples) to set out the division of any sale proceeds when the property is eventually sold. The Declaration will usually be in unequal shares where one party has perhaps paid the deposit and wishes to ‘ring fence’ this on a future sale. A note is placed on the property register restricting a sale from taking place without complying with the Declaration of Trust.
Things to take into account when considering whether you need a Trust
Trusts can be used to help reduce inheritance tax liability (IHT).
Certain financial products can help form part of the overall inheritance tax planning strategy for you and your family.
Life insurance may help those you leave behind with the ability to pay inheritance tax and it should be written into a trust so that it does not count towards the value of your estate.