Why Families in Marlow Are Turning to Trusts for Asset Protection
In Marlow, many families are thinking carefully about the future, and rising property values and changing tax rules have led more people in the area to look for smarter ways to protect their assets. One option growing in popularity is the use of trusts, a legal arrangement that helps families manage, protect, and pass on their assets effectively.
This article explains what a trust is, why it has become so relevant for families, and how it can help with long-term financial planning.
What is a trust?
A trust is a legal arrangement where assets are placed under the care of trustees for the benefit of beneficiaries. Once the assets are transferred into the trust, the trustees are responsible for managing them according to the rules of the trust document. Trusts offer a way to separate the ownership of an asset from the benefit of that asset. The trustees hold and control it, while the beneficiaries enjoy the income or value it provides.
Trusts have been used for hundreds of years in the UK and have recently become an increasingly popular tool for asset protection, particularly in areas like Marlow where property prices are well above then national average and family wealth can easily become at risk.
Why Marlow families are choosing trusts
1. Rising property values
Marlow is known for its elegant homes, good schools, and strong community spirit, and these qualities have meant property prices have increased to levels that would have seemed unthinkable only a few decades ago.
For many Marlow families, their home is their most valuable asset. While this is good news for long-term wealth, it also means that a larger portion of their estate could be subject to Inheritance Tax (IHT) when they pass away.
By placing a property or part of an estate into a trust, some families can reduce the future IHT burden and ensure that assets are passed to children or grandchildren in a controlled, tax-efficient manner.
2. Blended families and relationship changes
Modern family structures are complex, and many people nowadays are part of blended families, where children come from previous relationships. In these situations, a trust can make sure that everyone is treated fairly.
For example, someone may want their spouse to live in the family home after their death but also want the property to eventually pass to their children. A life interest trust can make this possible, giving the surviving partner security while protecting inheritance for the next generation.
3. Business owners and professionals
Marlow has a growing number of small business owners, consultants, and professionals who face potential liabilities from their work. For them, trusts can offer a form of asset protection by securing family wealth away from business risks.
By placing certain assets in trust, they can be separated from personal ownership. This may help protect them if business problems arise in the future and is particularly useful when combined with efficient tax and succession planning.
What are the most common types of trusts?
There are several kinds of trusts, each designed for different goals. Here are some that are often used by families:
1. Bare trusts – Simple trusts where the beneficiary has an immediate right to the assets
2. Discretionary trusts – Trustees decide how and when to distribute income or capital among beneficiaries
3. Life interest trusts – Allow one person to benefit from income or live in a property for life and the capital eventually passes to others
4. Family protection trusts – Designed to protect family wealth from probate delays, care costs, or disputes
Each type of trust has its own tax rules and legal requirements, so professional advice from a Solicitor is essential.
The role of professional advice
Setting up a trust is not a “one-size-fits-all” solution and requires careful consideration of tax, family circumstances, and legal details. Families Solicitors to ensure their trusts are set up correctly and in line with English law.
Professional advice can help families avoid several issues, including:
- Unintended tax consequences
- Incorrectly transferring assets
- Breaching trustee responsibilities
- Creating a trust that conflicts with a Will
Benefits of trust planning in Marlow
Families that take the time to plan properly often find that trusts bring peace of mind. The main benefits include:
- Assets are protected from unforeseen risks, such as divorce, bankruptcy, or care costs
- Trustees manage the timing and purpose of asset distribution
- Wealth can be passed efficiently between generations
- With proper structure, trusts can help minimise inheritance and income tax exposure
- Trusts are private documents, unlike Wills that become public after probate
As the value of property and personal wealth continues to rise in Marlow, families are becoming more aware of the importance of protecting their assets for future generations. Trusts offer a flexible, reliable way to achieve this, providing security and control over how wealth is managed and passed on.
At The Burnside Partnership, we have the knowledge and experience required to support you in setting up the right trust for your circumstances, enabling you to pass on your assets effectively. Contact us today to find out how we can help.