* to control and protect personal or family wealth and assets when someone is too young or unable to handle their own affairs
* to pass on money or property while you are still alive
* to pass on money or assets when you die under the terms of your Will – known as a 'Will Trust
Under the Community Care Act 1990 the Local Authorities have the right, by law, to seize your family home, put it up for sale, and use the proceeds to cover long-term care home costs.
Having a Property Trusts is a way of you avoiding losing your home to pay for long term care.
If you would like for your children or grandchildren to inherit some or all of your estate you need to stipulate so in your Will. However, if this is the only action you take in relation to your wishes, you will need to be aware that if the child is under 18 years of age, their inheritance will be held in a complex and costly legal trust until they reach 18.
By implementing a Children’s/Grandchildren’s Trust, you are able to avoid this complication and also dictate greater control over when the beneficiary should benefit from their inheritance.
Disabled Discretionary Trusts
Under the Inheritance Act (1975) the Social Services and the Department of Social Security may contest a Will if insufficient provision has been made to provide for the care of a disabled child, which can result in an unpleasant and costly legal dispute.
In the absence of a Trust and where the disabled beneficiary is unable to manage their finances, the Court of Protection can intervene and decide who they feel is a suitable receiver of your disabled child’s or beneficiary’s inheritance. The most effective way to ensure that their inheritance is preserved is through a Disabled Discretionary Trust as all assets (money, property, shares, bonds etc.) placed within the Trust can be used to provide for
their long-term care needs.
Inheritance Tax Trusts
If you are a cohabiting couple, you do not qualify for spousal relief from Inheritance Tax. This means that all of your partner’s wealth, over the £325,000 threshold, will be subject to the 40% tax.
Any tax liability above the £325,000 threshold can be eliminated with the Inheritance Tax Trust using tax planning tools.
The Total Asset Protection Trust
Total Asset Protection Trusts are highly specialist Trusts, which can be used to protect your home, assets,
savings and investments.
A key benefit of this Trust structure is that any property and savings held within the Trust are exempt from local authority means testing as the assets held within the Trust are no longer part of your personal estate. It also ensures that only your chosen beneficiaries are entitled to receive what you want them to and no person, Government or local authority can state a claim.
Set up by a barrister and monitored by taxation specialist accountants, the Total Asset Protection Trust, which is designed to hold assets for your benefit whilst you are still alive, is extremely versatile and robust, whilst providing you with full access to and control over your estate at any time.