Family Asset Protection Trust

Every one knows the importance of a Will, the need for Life Insurance life to care for your love ones and for Financial Planning for later years. But how can we preserve out assets to ensure that as much of our inheritance as possible passes onto our children. A Trust is a way of managing assets and can be created during someone’s lifetime.

The Family Asset Protection Trust helps us to plan for our later years and to ensure that as much of our inheritance as possible passes onto our children.

As you get older the Family Asset Protection Trust can help you in the following seven potential problem areas :

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Children inheriting at the wrong time

Unfortunately there are many families who have children with problems such as drug, alcohol or gambling problems or indeed a shaky marriage. Children inheriting a lump sum at the wrong time can be disastrous. If your assets were in a Family Assets Protection Trust then the trustees can decide when to distribute the assets to your family.

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Children’s Inheritance Tax

The Family Asset Protection Trust is considered an interest in possession trust so can not be used for inheritance tax planning. It is an effective tool for your children’s inheritance tax planning because the Trust assets do not form part of their estate.
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Sideways Disinheritance

When a surviving spouse remarries without making the right Will, the estate can end up passing to the new spouse’s family and not your family. By setting up a Family Asset Protection Trust and placing the majority of your assets into it, then your surviving spouse will have access to use them during their lifetime, but after they have died the assets in the Trust will only pass to the family members that you have chosen.
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Unwanted Claims on your Estate

If a relative comes forward and tries to claim on your estate, unless the claim is made within six years of placing your assets in the Family Asset Protection Trust the claim is unlikely to succeed and the they would have to show that placing assets in the Trust was to avoid the claim.
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Incapacity

If you have a substantial estate including a house and you become in incapacitated then this can create a real problem. For this reason we always advise client to set up a Lasting Power of Attorney (LPA). This can be expensive if you need to create 2 LPA’s. If you have the majority of your assets in a Family Asset Protection Trust then the remaining trustees can carry on and continue to control the Trust Assets.
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Care Costs

1 in 3 women and 1 in 4 men over the age of 65 eventually go into care and it is expected that one half of them will require long term nursing care. It is anticipated that the percentages will only increase. The Local Authority can make you pay for all care until your capital reaches £23,250 (correct as of April 2020 for England). The Family Asset Protection Trust can help but early planning is essential.
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Probate and Estate Administration Costs

Probate costs are much higher than people expect it can be an expensive, lengthy and time-consuming process. However, if, we put the majority of our assets into a Family Asset Protection Trust, then there should be no need to have to apply for probate, which can be lengthy and costly.

The Family Asset Protection Trust can help solve all the above problems. Our specialists in this area have over 15 years Experience in providing these Trusts successfully and have the right experience and knowledge to ensure that they are an effective solution for our clients.

Phone Number

01942 276780

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