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Trusts

We help and advise on family financial protection through the use of Trusts. A property Trust is designed to protect half, if not all, of your property from the assessment and an over-contribution toward long-term care fees. In addition, it will also protect the onward inheritance for further generations.

For more information on how a Trust can protect your assets, please get in touch with us today for further assistance.

Protective
Property Trust

Do you want to ensure that your home and wealth will go to your children or other loved ones? Have you considered what the effect might be on your savings, and potentially your home, if you need residential care in later life? Careful arrangements need to made to protect these assets from being used for Care Home fees. Therefore, a PPT (Protective Property Trust) can be established to help guard your estate.

Many homeowners hold their property as joint tenants which allows for 100% of the property to be considered towards care costs. With a couple that owns their own home, it is after the first death that proper financial planning through Wills and Trusts. It will ensure that protections come into their true benefit for the family and all Beneficiaries.

How it
Works

Upon the first party’s death, the value of the property share of the deceased is ringfencing by the Trust as the Will can bequeath the entire estate of the first party to die to the Trust. Therefore, the surviving spouse will keep their share of the house, and the deceased’s share will be held in the Trust. Furthermore, additional assets and money can also be held here so you will gain protective benefits.

Third party claims against the next generation of Beneficiaries is also factored into the Trust. Your children can have protection from claims against their inheritance (after it has been given to them) through the use of certain Trust clauses.

FAQs

Trusts have many advantages. They enable you to:

  • Provide financial support to a loved one who lacks (or has suddenly lost) the capability to manage their own affairs
  • Ensure that your money is used to provide for your needs if you become unable to take care of yourself
  • Take assets out of your estate to reduce how much tax your Beneficiaries will have to pay when you die, making sure that your hard-earned savings go towards looking after your family instead
  • Pass on your estate to your heirs without the time, cost and publicity of going through Probate
  • Help protect your assets from legal action by creditors or other litigants
  • Appoint successor Trustees who can manage the Trust after you have passed on, allowing your family to grow and manage its wealth for the benefit of generations to come
  • Some people set up Trusts to reduce their tax liability, or to mitigate the impact of Care Home fees in their old age

Many people choose to appoint a Solicitor as a Trustee and this can be highly beneficial. A Solicitor Trustee will be able to give other Trustees and the Beneficiaries the benefit of their legal expertise, ensuring the Trust is correctly managed in accordance with the Law. They also offer a neutral professional perspective in the event of any questions or disputes over the management of the Trust. 

The settlor determines how the assets in a Trust should be used – this is usually set out in a document called the ‘Trust deed’. Sometimes the settlor can also benefit from the assets in a Trust – this is called a ‘settlor-interested’ Trust and has special tax rules.

There could be more than one Beneficiary, like a whole family or defined group of people. They may benefit from:

  • The income of a Trust only, for example from renting out a house held in a Trust
  • The capital only, for example getting shares held in a Trust when they reach a certain age
  • Both the income and capital of the Trust
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Contact
De Rossi Griffiths

Give us a call today for our expert legal advice.

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