Bloodline Planning
Our clients often say: “ I want to make sure my assets remain with my children, grandchildren and great grandchildren”. Then they need to set up a trust.
A Trust is a legal document that helps individuals hold assets for the benefit of others.
Assets not protected by a Trust can be depleted by creditors or bankruptcy claims, divorce or separation settlements, Inheritance Tax bills or even sideways disinheritance.
Proper Trust planning can ensure that your bloodline will benefit completely from your estate and protect the family home and other assets against the costs of Long Term Care.
A Will Trust is a trust created in your Will that comes into effect on death. A Pilot Trust (or Living Trust) is a Trust created during your life time.
Severance Of Tenancy
There are two types of Tenancy: Joint Tenancy and Tenancy in common.
A Joint Tenancy is an arrangement where property is owned by two or more people. When one dies the ownership passes by survivorship to other owner(s).
A Tenants in Common is an alternative ownership to Joint Tenancy. Tenants in Common own specific shares of the asset and their share is passed according to their Will or the Intestacy Rules rather than by survivorship to the other co-owner(s).
To change from a Joint Tenancy to a Tenancy in Common, there must be a Severance of Tenancy agreement between the owners.
This is the legal process by which a joint tenancy is converted into a tenancy in common. This must be recorded at the Land Registry. All owners sign a Notice of Severance of Joint Tenancy, which is then stored with the deeds relating to the property.
This will allow one of the co-owner(s) of a property to dispose of their share in the property as they see fit through their will.
Property Protection Trust
The Property Protection Trust is a Will Trust designed to protect the family home after first death. It is a Life Interest Trust in favour of the surviving spouse.
After severing the tenancy, the survivor is able to benefit from the second share of the property during their lifetime. It is however held in the trust for the benefit of the beneficiaries, usually the children.
Once the life tenant dies or ends their life tenancy over the asset, the beneficiaries become completely entitled to the property.
These trusts can be extremely tax efficient tools for passing wealth to children without causing IHT issues on first death.
You can ensure that the property/assets places to intended beneficiaries while maintaining control via the trust deed as to how they are used.
You can shelter assets from aggressive creditors.
Your family can take advantage of means tested benefits when property or assets outside the trust might stop you from doing so.
Asset Protection Trust
The Asset Protection Trust is a Living Trust designed to protect the family assets and the beneficiaries during your life time.
The trustees you have selected control the distribution of the Trust assets according to your wishes.
They are given Powers of Appointment which enable them to pay capital and income to the beneficiaries, and have control over the destination of the assets.
It means that proper Bloodline Planning will be in place when you are unable to manage your financial and legal affairs.
An Asset Protection Trust also bypasses the process of Probate and assets can be managed by the Trustees without the need to wait for the Grant of Probate.
You can shelter the family assets from aggressive creditors or divorce settlements
You and your family can take advantage of means tested benefits whereas assets when not in trust might stop you doing so.
You may not have yet decided who should benefit from your assets and in which proportion. By placing assets in an Asset Protection Trust, you ensure your beneficiaries receive them at a time and in a manner that’s right for you and for them.
Disabled Will Trust
The Disabled Will Trust is a Will Trust set up for the benefit a disabled person who is incapable of managing their own finances should their parents or legal guardians pass away.
The trust capital is managed by the allotted trustees and the beneficiary is entitled to all of the income.
They can insure that the money helps the disabled beneficiary pay for care and living costs that they require, without affecting any means tested benefits they are already receiving.
Trustees have also the ability to add suitable beneficiaries such as carers.
The Trust also qualifies for special tax treatment.
Contact Us
Please fill out the form and a member of our team will contact you or call 0800 612 5331.
