Since the beginning of the global pandemic, the financial position for many has become increasingly difficult. Understandably, this has resulted in family members needing support – enter the “Bank of Mum and Dad”.
A recent report by SAGA notes that 21% of over 50s with children over the age of 18 have increased the level of financial support they have had to provide since the start of the pandemic. Did those families know the process might have more effectively been achieved if they had taken time to consider investing in a Trust?
Whilst Trusts were once considered only for the wealthy and landed, they are an incredibly useful tool in enabling families to support one another. Many of us need to consider the costs involved for our nearest and dearest to go to university, to purchase a property or to invest in a business. Trusts can be an excellent vehicle to protect family assets and inherited wealth for the next generation. When used appropriately, they may also be used to help mitigate inheritance tax.
If set up in the correct way, Trusts can be very useful for families from any background to protect family assets and handle finances for the future. They can then be effective and managed easily in the long term, proving to be a valuable instrument to meet the various needs of each family.
In many ways, Trusts are an integral part of the legal system in England and Wales. They are certainly not something to be feared, but with careful and considered advice, we at Burnetts can help you to manage your family wealth for your family needs. We all want to know that the “Bank of Mum and Dad” will be there for generations to come.
If you would like to know more about setting up a Trust, please contact us and a member of our Trusts Team will be happy to assist.