So why use Multiple Sibling Trusts?
Leaving assets to a single Trust is a better solution than leaving assets absolutely, but is it the best solution when there are multiple beneficiaries? Multiple Trusts provides both your clients and their beneficiaries with even more flexibility...
Complete autonomy and better management
We all know that if all of the Trustees (who may also be beneficiaries) of a Trust cannot agree on a course of action, it may be that the funds cannot be utilised for the benefit of beneficiaries as a result, meaning the Trust can't operate effectively.
Example: A client wishes to leave their 3 children money. It's unlikely that they would see it fit to put it all into one joint bank account, with all 3 siblings needing signatures on the account, or even worse, one sibling controlling the spending of all 3. I'm sure we can all picture the chaos! Additionally, from the beneficiary's perspective, how happy do you think each sibling would be to ask their brothers and sisters for permission each time they wanted to draw some money out?
Separate Trusts are useful in solving those tricky "who gets what" issues that can arise, particularly for those with "blended families". Allowing different Trustees to act across a number of Trusts means that each Trust can be managed independently of others.
Establishing separate Trusts for each beneficiary also means their individuals needs are accounted for, as your clients are able to choose:
- and how they wish their beneficiaries are to benefit.
Where the Trustees of a Trust are concerned with one family or member of the family as opposed to numerous individuals with different needs, the management of the Trust can be simpler, and therefore cheaper. A group of simple Trusts is much simpler to manage than a single Trust with many purposes, mixed assets, multiple beneficiaries and more potential for conflict amongst them.
Additionally, with Countrywide Legacy you are able to draft Multiple Sibling Trusts within the Will in minutes (as stated earlier, without the need to cut, copy or paste!), meaning an efficient service for both you and your clients.
Easy to understand
The layout of the Multiple Sibling Trusts within the Will has been altered to ensure the document is not only clear and concise for the client, but also simple for the advisor to explain to their clients. The wording of each Trust will be contained in ‘Schedules’ to the Will, so all of the Trusts appear together towards the end of the Will, before the final attestation page.
Additionally, Trusts containing Overriding Powers will be made simpler with the Overriding Powers only mentioned once where there are multiple Trusts. This ensures the Will is easy for your clients to read and understand.