The correct use of Trusts and Estate Planning can protect your assets from unintended third parties, and protect your children’s inheritance.
If you leave your assets directly to your spouse or partner on your death, have you thought what might happen if they remarry or need to go into care..?
Heir Tight Wills can show you how to reduce your inheritance tax liability, provide for your surviving spouse or partner while also ensuring your children’s inheritance doesn’t end up with people you hadn’t intended, and provide in a secure manner for vulnerable or irresponsible beneficiaries.
Make sure your Will is ‘heir-tight’
Our Estate Planning Assessment will give you valuable insights into the concepts and provisions that might be applicable for your situation.
Download our free guide to Personal Wills and Estate Planning for clear, straightforward information about the use of Trusts in Wills.
Protecting your loved ones’ inheritance
Discover how careful Estate Planning and the establishment of the right kind of Trust can protect your spouse’s and children’s inheritance. Our videos explain Flexible Life Interest Trusts and a Protective Property Trusts, contact us for advice about which would best suit your circumstances.
We found Rachael to be highly professional and knowledgeable, pointing out situations that could arise that we were not aware of and advising us on how to avoid these. Our Wills and Powers of Attorney are now complete giving us peace of mind knowing that these have been done with such professional advice. We would highly recommend.
What is a Trust?
A Trust is a legal entity which can either be set up during your lifetime, or by your Will to then come into effect on your death.
A Trust is essentially a ‘secure locked box’, into which you put any assets you wish to be protected. You then appoint Trustees to look after the assets in the ‘box’ (Trust) and nominate beneficiaries you wish to benefit from the assets during the Trust period, but without actually owning them.
There are different types of Trust which can be used for different purposes. In general terms, a Trust is used to provide either asset protection or tax benefits.
To get the right Trust for your specific circumstances you need to take advice from an experienced professional Estate Planner. If you don’t, you could end up creating an unintended tax liability by using the wrong type.
What is Estate Planning?
Estate Planning via your Will generally makes use of one or more Trusts to alleviate the potential problems that can arise from leaving your assets directly to another person, where those assets will then form part of their estate on their death.
When it comes to calculations for Inheritance Tax, a surviving spouse or partner’s future care fees or their remarriage, assets left directly to them via your Will might be lost before they can benefit the loved ones you ultimately wanted to provide for.
Through Estate Planning you can protect your assets against:
- Inheritance Tax – if you would prefer your family to inherit your money rather than the government
- Remarriage – if you don’t wish to leave your assets to your spouse’s next partner
- Long term care fees – to protect your assets for your family
- Loss of assets by vulnerable or irresponsible beneficiaries – e.g. those with drug or alcohol dependency or a gambling addiction, or from a beneficiary’s potential future divorce, debt problem or bankruptcy
In addition, using Estate Planning techniques you can:
- Remove assets you don’t need from your estate during your lifetime, while maintaining control of them for future beneficiaries
- Make gifts out of income e.g. to hold investments for grandchildren or pay their school fees
- Control the age young beneficiaries take ultimate control of their inheritance
- Provide for those with vulnerabilities or disabilities without risking their eligibility for means-tested state benefits
- Make provision to protect the decision-making function within your business while providing for non-management beneficiaries
Ensure your estate is prepared and protected
To find out which Estate Planning techniques are right for you, complete a free Estate Planning Assessment to cut through the jargon, clarify your objectives and identify the best options for you and the loved ones you leave behind.
Alternatively, you can contact us by telephone or email.
