Bloodline Trusts

Bloodline trusts are a more versatile type of trust that allows you to take control over who can benefit from the trust and by how much.

Also known as discretionary trusts, family protection trusts and wealth protection trusts, a bloodline trust allows you to create a trust with a range of potential beneficiaries and provide greater control on whether assets are released.

With this type of trust, your assets are protected to make sure they remain in the family unit. 

These protections will ensure your wealth is protected from:

  • Divorce in future generations of a family
  • Bankruptcy
  • Inheritance Tax (IHT)
  • Other taxes

How JMW Can Help

Our team of expert solicitors understand that no two family units are the same and are well placed to develop a comprehensive and watertight discretionary trust.

Our dedicated wealth protection solicitors have helped many clients to protect their assets and understand the complex requirements to ensure your family’s wealth is protected and your beneficiaries are looked after in your absence.

Several of our lawyers are also members of the highly-respected Society of Trust and Estate Practitioners (STEP) as well as being named in the Legal 500.

If you want to protect your family assets by setting up a bloodline trust, contact JMW today to find out more about our services by calling 0345 872 6666. Alternatively, let us know that you would like to hear from us by filling in our online enquiry form and we will get back to you.
 

FAQs

What are the benefits of a bloodline trust?

There are many benefits to setting up a bloodline trust as they can be tailored to a variety of different scenarios and family units. They are particularly beneficial for protecting assets for beneficiaries who are unable to manage their own funds such as minor or young children, and for Inheritance Tax mitigation.

Do discretionary trusts pay tax?

Discretionary trusts provide you with greater control over your assets; however, this comes at a cost, and a bloodline trust is classed as a ‘chargeable lifetime transfer’. This means that if you transfer more than £325,000 into a trust in any seven-year period, you will have to pay a 20% Inheritance Tax immediately on the excess.

Discretionary trusts also pay Income Tax and Capital Gains Tax on income and gains generated on the trust assets, and potentially pay small of amounts of Inheritance Tax every 10 years. Our advisors can talk you through the tax consequences of establishing a trust so that you can weight up the advantages and disadvantages.

Talk to Us

If you want to protect your family assets by setting up a bloodline trust, contact JMW today to find out more about our services by calling 0345 872 6666. Alternatively, let us know that you would like to hear from us by filling in our online enquiry form and we will get back to you.
 

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