You may think of trusts as the preserve of the wealthy, but that's not entirely the case. A trust is a very useful vehicle that can be established to provide for the needs of minor children, children with special needs, or dependants who may not be good at handling money, including a surviving spouse. You can set up either a testamentary or an inter vivos trust, depending on your needs. A testamentary trust may be both necessary and a cost-effective way to meet the needs of many families. A testamentary trust is one that is set up on your death through your will. An inter vivos trust is created by way of a contract, not a will, and operates while you are alive. While you may not need an inter vivos trust, if you don't make provision for a testamentary trust, any money you leave to minor beneficiaries will go to the Guardian's Fund, which falls under the administration of the master of the high court. Making claims from this fund for the everyday needs of beneficiaries can be an a...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now