Trusts & Inheritance Protection Planning

At their most simple, Trusts are the relationship that exists between trustees and beneficiaries.

When you place your asset in a Trust you are securing the future of it in the hands of people you trust the most, your trustees. That way you can be sure it will be used correctly after you are gone and benefit only those you would want, your beneficiaries. 

This is used to safeguard your share of your property by directing it into a Trust on your death, protecting the capital for your chosen beneficiaries, but it allowing your surviving spouse or partner to continue living there after your death. 

It is a good estate planning tool as it provides some asset protection whilst preserving the necessary inheritance tax relief rates

This is similar to the Property Life Interest Trust but deals with your entire estate rather than just your Property.  It offers a great deal of flexibility for the surviving spouse and beneficiaries.  If used correctly it can also help to mitigate an inheritance tax liability.

This is used to either direct specific assets or an entire estate for the benefit of an individual who is vulnerable or unable to manage their own affairs.  It can protect means tested benefits and ensure that the vulnerable person has what they need.

This can be used to protect business assets for your family whilst taking advantage of Business Property Relief that may be available. This is very good for allowing business continuity whilst financially supporting your surviving family.

This is used to ‘ring-fence’ assets and/or money. This Trust provides you with a life interest in the asset, but it will not form part of your estate on death (except for Inheritance Tax purposes). Therefore, it provides you with the peace of mind that the asset is protected for your chosen beneficiaries.

Many clients ask whether setting up an Asset Protection Trust will protect against care home fees. This is a complicated area and involves consideration of a concept called ‘deliberate deprivation’ – where assets are sold, transferred or used to deliberately avoid care fees. If assets are transferred into an Asset Protection Trust whilst care fees are not even contemplated, and when the clients are healthy and not considering going into care the assets may be excluded from a local authority assessment for care fees. A full assessment of the individual’s circumstances will be required.  If this trust is used to avoid paying care fees then it will not work.  

Trusts don’t have to be complicated, expensive or frightening. Our role is to understand your circumstances and wishes, recommend a Trust only if it will benefit you and your family and explain everything to you in an easy to understand manner.

Trusts are incredibly useful for anyone who wants to protect their assets ensuring they end up in the right hands at the right time.

Advantages of using a Trust

Trusts can be a very effective estate planning tool, but a lot of people simply do not understand the benefits and are reluctant to use them.  Here are some advantages of using a Trust:

We will only recommend a Trust to you if we feel that it will benefit you and your individual circumstances. If you agree and feel that it is the best course of action, we will guide you through the whole process ensuring that you understand and are comfortable you have made the right decision.

Get In Touch

If we can assist you or you have any questions, get in touch