The Willwriting Partnership

0161 7054382

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Find out the secrets to using your will and other trusts to protect your home and assets in the future

Protect your most valuable assets

The Family Asset Protection Trust is one of our most popular services. In its simplest form, a trust is an agreement between two or more people regarding the care and distribution of property. With a Family Asset Protection Trust from The Willwriting Partnership, you could be enjoying these benefits:

  • Knowledge that your home will stay in your family as you desire
  • Comfort that any unwanted claims against your estate will not be successful
  • Lowering professional probate fees by £1,000s
  • Protection of your home against unwanted circumstances such as bankruptcy, divorce, family disruption, disinheritance, relationship breakdowns and so on.

Contact us for a free consultation,
or call 0161 7054382 now.

So what is a Family Asset Protection Trust?

Family

It may help you to think of the trust as a ‘safety deposit box’ to keep your assets in. You can pass assets to a family trust established in your own name and for your own benefit whilst you are still living.

Placing your assets into a family trust should ensure that they pass to the people you want them to after your death, according to the terms of the Trust, or under the terms of your will. Inheritance due to any unreliable beneficiary can be protected by the trust and be passed to them at a more appropriate time.

The family trust is set up during your lifetime and you can put all your assets, including your home and savings up to the current inheritance tax threshold of £325,000 (per person).

Legally, ownership of the assets pass from you to you and another named person who then holds the property as ‘trustees’.

If you continue to be a trustee then you will remain in control of the asset. The Family Asset Protection Trust can help you and your family avoid some of the following problems:

1. Probate Fees

Probate costs are often much higher than expected. Some solicitors, banks and probate lawyers can charge around 4% for dealing with your assets after your death. There can also be some considerable time delays when dealing with your assets. You will not need to get probate for any assets within the trust.

2. Care Home Fees:

The rules about paying for care are contained in legislation. If you were to need long-term-care in the future, then you may or may not have to pay for that care, depending on what condition or conditions have been the cause of that need and depending on the level of care that you require.

If you do need to pay for your own care then your assets can be used to provide the necessary funds. Many people face a situation in which they believe they should not have to pay for their own care as they fall into the relevant criteria for NHS funding. However without a Lasting Power of Attorney in place their families are unable to represent them or appeal against funding decisions.

For people that have made Lasting Powers of Attorney and who have also placed assets in trust, have provided a level of control whereby family members are able to act on their behalf and help to represent your interests in any claim made against your assets.

3. Mental Incapacity:

One way of obtaining help with your finances, should you lose capacity, is to prepare a lasting power of attorney. A family trust will work in the same way without having the added costs of applying for registration with the court. A family asset trust will enable you to retain full control of assets with the help of other trustees – namely your close family members.

All other areas of your finances and your health should be catered for by creating Lasting Powers of Attorney.

4. Bankruptcy:

Subject to conditions, placing assets in a trust may mean that they are disregarded if you, or your children after your death, become bankrupt.

5. Claims on your estate:

Some people are concerned that a claim may be made on their estate on their death. For example, by estranged children, ex spouses, distant relatives. All assets within the trust are safe from such claims.

These claims have been on the increase in recent years. In fact, the number of claims doubled from 2013 to 2014!

6. Remarriage Problems:

Anyone who remarries may face the problem that their assets will go to their new spouse when they die and not to their own children. If you place your house and other assets into the trust, you will avoid this disinheritance.

7. Children with Problems:

If you have children with drink, drug, gambling, alcohol problems or who are just ‘spendthrifts’ may find it beneficial to have some independent control over their inheritance.

8. Children’s Future Divorce:

Assets placed in the family trust are protected from loss if the worst comes to the worst and your children divorce in the future. Assets held within the trust are sheltered from any divorce proceedings.

Contact us for a free consultation,
or call 0161 7054382 now.