Drafting Will Trusts for Private Client Professionals - 6 Essential Modules

Introduction

For private client professionals, drafting will trusts requires a clear understanding of the underlying legal concepts, as well as the practical issues that can arise when translating those concepts into effective testamentary provisions.

This practical box set will explore the key principles surrounding the drafting of will trusts, helping practitioners understand the available options, avoid common pitfalls and develop more effective drafting strategies.

Delivered from an England and Wales legal perspective, the box set will also provide valuable guidance for international lawyers who advise on or prepare wills intended to comply with UK requirements.

What You Will Learn

This modular webinar will cover the following:

Module 1 - Key Aspects of Trusts

Before exploring the different types of trust available, this module will examine the fundamental principles and key considerations that underpin trusts.

The module will cover:

• The key roles of testators, trustees and beneficiaries
• The requirements for creating a valid trust in a will
• Whether the trust should be created within the will or by separate document

Module 2 - Contingent Interest Trusts

As one of the most common types of trust, this module will examine trusts where a beneficiary’s interest is conditional upon a specified event or condition being satisfied before it vests.

The module will focus on:

• Different types of contingencies and how they operate
• What works in practice - and what doesn’t when drafting contingencies
• Provisions to address what happens if the contingency is not satisfied
• The effect of contingencies on administrative provisions
• The implications for the Residence Nil Rate Band (‘RNRB’)

Module 3 - Interest in Possession Trusts

Interest in possession trusts in wills can take many forms, from a simple right of occupation through to a fully flexible life interest and can provide an effective means of protecting assets while meeting the needs of beneficiaries.

This module will review:

• The different types of interest in possession trust
• Which assets should be subject to the interest in possession?
• Whether to include termination events and how they should operate
• The use of overriding powers of appointment
• Potential pitfalls and hidden dangers when drafting interest in possession trusts

Module 4 - Discretionary Trusts

The ultimate flexible trust, the discretionary trust offers significant scope for flexibility and asset protection but is sometimes overlooked because of its potential tax charges and the loss of the Residence Nil Rate Band.

This module will consider the use of discretionary trusts covering:

• The different types of discretionary trust, including nil rate band, two-year and full discretionary trusts
• Using discretionary trusts for different types of assets
• The resurgence of the nil rate band discretionary trust
• Using discretionary trusts as an alternative to interest in possession trusts

Module 5 - Taxation

When considering whether to include a will trust, it is essential to understand the potential tax implications, including inheritance tax, income tax and capital gains tax. Practitioners must also consider the impact on the nil rate band and Residence Nil Rate Band, including whether and how these allowances may be preserved or transferred.

This module will cover:

• An overview of the taxation of trusts
• Inheritance Tax during the lifetime of the trust and on its termination
• Income Tax considerations for trusts and beneficiaries
• Capital Gains Tax implications for trust assets and distributions

Module 6 - Post Death - Running the Trust

Following the testator’s death, practitioners will often need to consider whether the trust should be retained or brought to an end, taking into account the legal, tax and practical implications of each option.

This module will focus on:

• When and how to bring the trust to an end
• The tax implications of terminating the trust
• The powers and duties of trustees when ending or retaining the trust
• The advantages and disadvantages of retaining the trust post-death