Family Protection Trust

Welcome to great, all-round protection for your home and assets

Your Will is the first, key step towards planning ahead successfully for later life.

It tells everyone how you want your money, your property and all your belongings to be shared when you pass away. With a Family Protection Trust, you can make sure that what you want to happen, does happen.

Your Will stays in force according to your wishes and you can update or change it at anytime. Your Family Protection Trust works alongside your Will and provides complete protection for your assets, meaning you leave behind more for your loved ones.

You’re in control at all times With a Family Protection Trust you stay in control -you simply place your assets in the Trust and you are the main Trustee. It means you can carry on using your assets, your home, your money and your investments, just as you normally would. So you’re free to sell your property, spend your money as you want and save and invest as usual . Most importantly, any property, savings and investments held in the Trust, can continue to grow in value.

Remember, we’re here to help. So if you do have a question and you can’t find the answer you’re looking for, please don’t hesitate to get in touch.

How your Family Protection Trust works

A Family Protection Trust is a legal contract where one or more ‘Trustees’ are officially responsible for holding assets. You can include assets such as property, money and shares. These are placed in Trust, for the benefit of you and your beneficiaries. Along with other Trustees, you are also responsible for managing the Trust. Your Trust is a legal way to make certain that the wishes you have written into your Will are carried out. Because of that, your Trust provides a very effective way of protecting your assets for future generations.

You stay in control you simply place your assets in a Trust, and you are the main Trustee. It means you can carry on using your assets your home, your money, your investments­ just as you normally would.

With a Trust in place, your assets are protected and you’re in control

  • No need for Probate for all assets held in the Trust
  • Children always inherit at the right time
  • Beneficiaries inherit quickly and hassle-free
  • Avoid beneficiaries potential Inheritance Tax
  • Offers protection against Long term care 

Here’s how your Family  Protection Trust protects you

Probate Costs

When you pass away, the process of managing your estate to distribute any inheritance to your loved ones is known as Probate. This can take up to nine months. As well as being time consuming, Probate can be costly- typically 3-5% of the total value of your estate.

With a Family Protection Trust:

For any assets held within your Family Protection Trust, there is No Probate. This means that any inheritance can be passed to your loved ones exactly as you wish, usually within weeks, at no cost.

Sideways  Disinheritance

When the first partner in a marriage passes away, the surviving spouse receives the inheritance . If the surviving partner remarries then passes away before their new spouse, the estate could then be passed to them, leaving out any children or beneficiaries from the first marriage. This is known as Sideways Disinheritance and is usually unforeseeable.

With a Family Protection Trust:

Having your assets held in a Family Protection Trust is a way to prevent this from happening. Your Trust ensures that your assets are protected and that your loved ones receive the full inheritance you wish them to have.

Children Inheriting at the Wrong Time

Many families have children who are going through difficulties at the time they receive their inheritance. This could be anything from separation or divorce, addiction, or even gambling problems. So it may not be in their best interests to receive their inheritance at this time, because it would be included in the assets.

With a Family Protection Trust:

A Trust can avoid this happening by allowing the assets to remain in the Trust, until the Trustees decide that the children or beneficiaries are in a better position to receive their inheritance.

Children’s IHT (Inheritance Tax)

Any inheritance you leave your loved ones will add to their own wealth and could push them into their own Inheritance Tax situation. They could have to pay 40% of any amount above current IHT thresholds (£325,000 if single or £650,000 if married, tax year 2016/2017) .

With a Family Protection Trust:

If you leave the Inheritance to them in the Trust, it doesn’t form part of their estate, so you won’t be passing on an IHT problem. Your children can still spend the money or invest it within the Trust .

Claims against the Estate

Regardless of what you express in your Will, anyone can contest it. Children can claim one third of their parents’ moveable estate upon the first parent’s death and one half upon the second parent’s death.

With a Family Protection Trust:

Having a Trust in place, guarantees that what you have stated in your Will is what will happen and having a professional Trustee ensures there is a solicitor there to defend the Trust whenever necessary.

Long Term Care

If you require care, the local authority can take all of your assets to pay for it. They make you pay at the full rate until your capital runs down to £23,250 (£26,000 in Scotland) and then at a reduced rate until your capital runs down to £14,250 (£16,000 in Scotland). This means that only the last £14,250 of your money is protected.

With a Family Protection Trust:

As a result of setting up a Family Protection Trust, many customers find that all the assets held within it are excluded for any means assessment for Care costs. However, this is not the purpose of the Trust. It is crucial that a Trust is set up at the right time for the right reasons, for it to work.