Family Trusts – A very important consideration in Estate Planning
Trusts are one of the most important factors in any Estate Planning. They are routinely used to protect your assets against inheritance tax, potential claims on your estate or other threats like care home fees.
Most assets can be placed into trust, like your home, savings and most investments (other than an ISA and premium bonds which must be held in your individual name).
They are also known as a Lifetime Trust, Asset Protection Trust, Home Protection Trust and many other names. The principal benefits are that a trust can provide you with control, protection, flexibility and peace of mind. Lifetime Trusts are nothing new; they have been around for many years to provide a vehicle to protect inheritances for your loved ones by mitigating a number of factors that can quickly and easily diminish that which you’d like to pass on. Astute people from all walks of life will have assets placed into Trust for comprehensive estate planning.
Many factors affect an Estate without a Trust in place for example sideways disinheritance, where assets pass sideways to a new spouse or partner after the first death and ends up being passed down the wrong bloodline.
Protection of your estate
Placing your assets into a family trust gives you maximum protection over your estate, with complete flexibility. It can take into account your individual needs and objectives – for example, paying for education fees for a young person but not directly passing on a large sum of money until they are more experienced. At NJP Estate Planning we are all fully qualified and able to offer clear and comprehensive guidance. With an exceptional quality of service, we are able to set up family trusts to benefit you and those around you.
Protect your assets from unwanted claimants
It is vital in todays society to protect your property or properties so unwanted third-party claimants cannot make a claim. By placing your assets into a Family Trust, it will protect your property from sideways disinheritance so your children will not be disinherited from your property. Plus, it will protect your estate from early death or divorce from a beneficiary.
Benefits of a Family Trust
Placing property into Family Trusts carries a whole host of financial planning benefits including
Avoiding inheritance tax liability within the beneficiary’s estate
Protecting the means tested benefits of a disabled beneficiary whilst still giving them access to their inheritance.
Protecting your assets from an excluded or unreliable beneficiary.
Protecting your estate from creditors.