Trusts form a very important part of estate planning when it comes to protecting vulnerable family members, your property or other assets. A simple way of understanding how a Trust works is as follows: If you owned a property in the real world and wanted to keep people out, the best way to do this would be to put a fence around it.
A Trust can be imagined as a legal way to put a fence around the things you want to protect (ring-fencing) - whether that be a property, a child’s inheritance until they come of age or another asset –only people you have specifically named will have access to them.
If you would like to arrange a no-obligation consultation to discuss how you can protect your assets using Trusts, get in touch today.
Why do I need a Trust?
Trusts come in many different forms but they can solve many of the risks and uncertainties faced by an individual looking to protect their assets after they have gone. We can advise you on your situation and recommend the best way to protect your assets and your loved ones.
Trusts can offer you protection from:
- Certain individuals who aren’t provided for you in your Will being able to contest it
- Children from a previous relationship not being provided for should you die before a new spouse or partner
- A child with an addiction or money problem inheriting a large amount of money in one go without having any controls in place
- Having your share of your home sold to pay for another’s care fees
Trusts can also protect your family from:
- The expense, lengthy delays and red tape of the probate/estate administration process
- A beneficiary’s benefits being stopped because their inheritance pushes them over the ‘savings cap’ with their inheritance then having to be used to cover care costs
- A beneficiary losing a significant proportion of their inheritance just because they happened to be going through a divorced at the time that you die
- A beneficiary potentially losing a significant proportion of their inheritance just because they happened to be in debt when you die
- Future generations having to pay Inheritance Tax