This Month - Living Trust vs Will Trust: The Assisted Dying Bill: The Real Mr Bond.
Living Trust vs Will Trust
When it comes to Estate Planning and utilising Trusts, two of the most common options are a Living Trust and a Will Trust. Let's briefly explore the differences between the two.
Living Trust
A Living Trust is a legal arrangement that allows you to transfer your assets into a Trust during your lifetime. The Trust becomes the owner of these assets, and you can act as a Trustee, retaining control over your property and the Trust. It provides flexibility, ease of Estate distribution, protection from life's unfortunate events such as bankruptcy, sideways dis-inheritance, care fees, legal challenges to your distribution etc and helps avoid probate on the asset placed within the Trust. A Living Trust ensures your assets are managed seamlessly if you become incapacitated, preventing the need for court-appointed guardianship. As and when the inevitable happens, the other Trustees step in to manage or distribute the assets according to your wishes.
Will Trust
A Will Trust is a Trust written within your Will. The Trust is established upon your passing away, and your assets are distributed according to your wishes. Unlike a Living Trust, it does not provide protection from life's unfortunate events and a Will Trust must go through the probate process, which can be time-consuming and costly. On the other hand, It can be particularly useful in situations where the beneficiaries are minors or lack the capacity to handle their inheritance. If you're sure that you do not need protection from life's unfortunate events and there will be no challenges to your Estate distribution, then it's a viable option.
So, which is the right choice for you?
Living Trust: Perfect for those seeking ease of distribution, asset control, protection and the ability to manage their affairs during incapacity.
Will Trust: Ideal for those that are sure they don't need protection and that there will be no challenges regarding their Estate distribution.
Got any queries or want to know more?
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Protect, Plan and Pass On...
The Assisted Dying Bill
During a House of Commons debate today, MPs shared sharply divided views on the Assisted Dying Bill, which seeks to give terminally ill individuals with six months or less to live the option to end their lives with medical assistance.
The bill was backed by a vote of 330 to 275. While this vote does not make the bill law, it allows it to progress to further parliamentary scrutiny with the support of the elected chamber.
Following five hours of intense discussion, MPs agreed to advance the bill to the next stage of the legislative process. This milestone decision initiates months of detailed examination, bringing the UK closer to potentially legalizing assisted dying for terminally ill individuals.
The debate featured deeply personal accounts from MPs, highlighting the profound and emotional nature of the issue. Proponents argued that the bill would provide terminally ill patients with greater autonomy and dignity in their final days. Critics, however, emphasized the need to prioritize enhanced palliative care instead.
At present, UK law prohibits individuals from seeking medical assistance to end their lives, compelling some to travel to countries where assisted dying is permitted. The bill includes safeguards such as High Court oversight to ensure that any decision is made freely and without coercion.
The Real Mr Bond.
Reg Bond, a multi-millionaire who amassed a £50 million fortune from rubber tyres, died at the age of 77 in March 2021. With a £350 compensation from an eye injury, he started a car parts business that eventually became Bond International Tyres, one of the UK’s largest wholesalers of tyres.
His final Will, dated November 2019, allocated almost all of his £50m Estate to his sons Charlie and Graham, leaving his other son Mike and daughter Lindsay with only £325,000 each.
Mike and Lindsay challenged the Will’s validity, arguing that their father was mentally incapacitated due to his declining health. Witnesses testified that Mr. Bond appeared confused and forgetful when signing the Will. In contrast, Charlie and Graham argued that their father was still active, working out in the gym, and planning to drive a new Bentley.
After a four-week trial, Mr. Justice Michael Green ruled in favor of Mike and Lindsay, finding that Charlie and Graham did not sufficiently prove that Mr. Bond had the mental capacity to execute the 2019 Will. The judge reinstated the 2017 Will, which divided Mr. Bond’s Estate equally among all four children.
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