When it comes to issues with trusts in Marks Tey (or anywhere else throughout Essex), there is a need to be aware that, whilst they may prove to be invaluable estate planning tools, they are not without their problems. Consequently, Laura Richardson now looks to explain why issues may arise with trusts in Marks Tey with a view to raising your awareness of what you need to be aware of when it comes to fulfilling your estate planning needs . . .
Trusts are often set up as part of your Will, for example if you wish to leave something for a child. In the case of children inheriting, whether it be property, money or personal effects, it would be held ‘on trust’ until they reach adulthood, or in some cases until they reach a certain age or achieve a certain milestone such as marriage.
Recently I was approached by a family friend, Mrs M, in Marks Tey who asked me to share her experience regarding a Trust set up by her late husband. In this case Mr and Mrs M had Mirror Wills prepared including a Trust. In the case that either of them died, their share in their family home would be held on trust on behalf of their four children. Sadly Mr M passed away last year, and in accordance with his Will, his half share of their family home was passed down on trust for their children under the care of two trustees. It was at this point that Mrs M experienced some difficulties. Mrs M needed to renew her home insurance but many of the insurance companies that she contacted refused to insure the property due to the fact that half of the home was held on trust. The reason stated for the refusal was that the insurer would have to arrange for each trustee to be investigated, as to whether they had made a claim on insurance in the last few years, or if they had a criminal record. Although in this case there were only two trustees to investigate, in some cases there can be many more trustees involved and therefore many of the insurance companies simply decided not to offer insurance to any property held in this way. Mrs M did find an insurer, however it is important to note that setting up a Trust in this way can have implications beyond just the ownership of property. It is important to receive in depth advice upon setting up a Trust. During the distressing time following Mr M’s passing, Mrs M was put under increased stress and upset caused by this unexpected issue.
Furthermore, it is often the case that one partner is more involved in the financial arrangements and household management than the other. It is vitally important that as time goes on, that these arrangements are discussed and explained. It is important to keep an accessible record of home insurance policies, important documents and contact details of relevant companies. It is most important that the location of these are shared between the relevant family members so that in the event of your death, this information can be easily accessed which will alleviate some of the stress involved in contacting the appropriate companies.
If you have any concerns about a Trust, or would like to discuss how to set up Trusts in Marks Tey or anywhere else throughout Essex then Andrew Douglas Wills and Legal Services would be happy to hear from you via our website at www.andrewdouglaswills.co.uk.
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