Hello,
I am trying to understand the benefits of introducing a trust into my families' estate planning.
The aims of the trust would be to achieve the following:
1, Hold and invest assets in order to pay for the education of my grandchildren (born and unborn) and to provide them with a capital contribution to buy their own home on starting a family
2, Provide income to my two sons during their life-time
The assets that would be in the trust are as follows:
£000
Mortgage free residential home 800
50% share of BTL property 150
Stocks & shares 200
Cash at bank 70
Pension 250
Term Life Assurance policy
The trustees would be me and my two sons. The beneficiaries would be my grandchildren (born and yet to be born).
Income generated from the trust assets (i.e. from renting the 2 properties, interest and dividends on the stocks and shares) being split 25% each for my two sons, and the remainder staying in the trust. I also envisage that one of my sons and his family could live in the residential home on my passing, subject to paying a market rent to the trust. In the event of the sale of either of the properties, or stocks and shares, the proceeds would be split 25% each for my two sons, and the remainder for the trust.
I would be interested in whether a trust is a tax efficient way of achieving the above outcomes, and what is the most appropriate form of trust for the above objectives.
Thank you in advance
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