The all in one Way to protect
Your assets and loved ones.
These are trusts written in your lifetime. Assets up to the Nil Rate Band ( currently £325,000, 2016 I 17 ) are transferred into the trust (by “the Settlor”). A couple can both do this, so using up to £650,000 of assets. The trusts allow the assets in them to be returned to the Settlors at a later date. Your Will is the first key step to planning successfully for later life. It tells everyone how you would like your wishes carried out. The Family Protection Trust works alongside your Will, to ensure that what you want to happen, actually does. It provides complete legal protection for your home and assets. The result? You leave more of your estate to your loved ones, saving money, time and stress.
One advantage of this route is that assets within the trust will have a reduction in probate costs and quicker access to the assets in the trust on death (as the assets in trust do not need to go through probate), protection for family members (only specified beneficiaries can inherit – so “in-laws” can be excluded), unreliable children are protected from themselves (as the trustees have control of the assets), if the Settlor loses mental capacity the trustees can look after his assets (but Lasting Powers of Attorney should also be considered), the Settlor’s partner’s future partners are excluded and assets in the trust eventually passing to children will not increase their Inheritance Tax liability. Other advantages are the assets in Trust could be protected if both of the couple end up in long-term care. (if done early enough and is not the sole reason for doing the trust, and is part of your bigger Estate Planning process)