Every person has a dream of planning a secure future for his family. No one knows when he might die so people try to plan for future in a way to provide security to their partners, children and even relatives. People mostly use wills to provide this safety net. Wills ensure the division of wealth and the rest of the belongings the way a person would want it after his/her death.

Some people tend to think that a will cannot be enough to settle difficult matters like property distribution among the heirs, and they want something more. They opt for a trust that is more practical and easier to manage. This is especially true in cases where the heirs are underage and other people cannot be trusted. In these situations a trust could come real handy.

Beneficiary trusts, as the names suggest, are trusts in the name of a beneficiary and are managed by a trustee, as chosen by the settler. Laws in the United Kingdom state that a settler has to clearly define the nature of the beneficiary trust and the extent of power a trustee can exercise.

Bare Trust

Bare trusts are the most commonly operated beneficiary trusts created to help provide the beneficiaries with the power of control over assets of any kind. This kind of trust basically has an appointed trustee having the complete authority over the assets. The trustee is made liable to transfer this authority to the beneficiaries whenever they demand. It is mostly used to provide help to children with a reliable person appointed as the trustee. Now this trustee would transfer the assets to the children when they get to the legal age of 18, according to the laws in UK, and ask for it.

Interest in Possession trust

Interest in Possession trust does not provide the beneficiary with the control over the assets but instead he/she is given all kinds of interest income and profits earned.

Discretionary Trust

Discretionary trusts allow the trustee to discretely decide how much of the asset to give out to each beneficiary.

Mixed Trust

Mixed trust is normally used when the beneficiaries have a varied rage of ages. It becomes beneficial for everyone involved in cases where the oldest child gets to adulthood and the others are still younger. With this trust, the oldest child then gets into the possession trust and the remaining children are secured under the mixed trust.

Accumulation and Maintenance Trust

Another trust for underage children is the accumulation and maintenance trust. This trust benefits the children until they get to the legal age of consent.