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Protecting Assets

So many of us think that writing a will is all we need to do look after our beneficiaries, to make sure our family get what we leave them. But a will only protects/distributes our assets on our death and if those assets have been eroded there might be little to pass on. Steps can be taken to safeguard our assets.

How can I protect my assets?

The later years of our lives can be expensive and add to this the cost of dying, researched and reported yearly by Sunlife, (2015 9th annual report) currently shows the average cost was £8,427. Then there’s probate to consider and the proposed increases in the certificate charges! It all seems very unfair frankly.

Will Trusts

Commonly used to protect property, will trusts protect portions of property of those who die while granting lifetime occupancy to surviving partners. This will trust ring fences the assets held within it. For many, this is a sensible option used to protect at least half of the property later in life when the first partner passes on.

Asset Trusts

Family Asset Trusts are designed to protect assets during your lifetime as well as after death, like the will trust they ring fence assets from a multitude of threats and can be used to mitigate IHT for your children and grandchildren , protect from claims against a will, protect from business debts, negate probate and more.

Inheritance Tax

The individuals inheritance tax nil rate is currently £325,000 meaning that anything over this invites a taxation at 40% However, with the introduction of the residential nil rate band this will increase the nil rate to £500,000 in certain circumstances by the end of 2021. Our Partners have a number of mitigation plans to help limit the impact. Contact us for details on your nil rate bands and how they are applied.

Gifts u0026 Spending

In general terms gifts can be made to reduce inheritance tax liabilities however they remain taxable for a period of seven years from the date of the gift. One must be careful what is being gifted and when, for instance if you are about to be means tested the gift may be overturned. Spending under similar circumstances if reckless can be viewed badly by the authorities.

Gifting your home

Recent press suggests local councils take a very dim view of older people gifting their homes to family to lower their overall asset value to make it look as if they are poorer than they really are. Ou003cstrongu003ever and above local authorities actively prove intentional depravation.u0026nbsp; There are inherent risks in giving up your home and relinquishing control.u0026nbsp; There are better legal routes available that will protect you and your family more.u003c/strongu003e

Will Trusts

Asset Trusts

Trust Preparation Process

The consultation takes place and an explanation is given of what trusts are available and what they can achieve.
Once you have chosen the type of trust you wish, we will guide you in such a way to make sure you reduce the normal solicitors fees and costs, by helping you to administrate and create your settlement correctly.

The preparation of your will(s) and or trusts which can be prepared in 2 or 3 weeks or a little longer depending on complexity.

The delivery and guidance with the signing of your Will(s) and/or trust documents.

You may choose to keep your Wills and/or Trust Settlement at home or in a safe place heeding the message from the Ministry of Justice (gov.uk) warning you NOT to store your will at a bank in your safety deposit box. The box CANNOT be opened until probate is granted and probate can’t be granted without the original will.

Our partners will provide you with one of the most comprehensive systems where only you and your partner (or on your passing) your chosen executors gain access to your documents with an ID certificate issued on completion. This will make sure whilst your alive and your will/wills are a live document, you can make amendments/changes without any further codicil charges for instructing the changes. There are flexible payment options from lifetime (one off payment), annually or monthly to suit all budgets.

Our philosophy

We create robust legal documents for our clients including wills, lasting powers of attorney, asset trusts and more, working at your convenience to make it easy in this busy world!u003cbru003e

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Common questions

Do trusts protect against care fees?
You must not set up a trust to primarily avoid care fees as this could be viewed as deprivation of assets. However, a will trust can protect half of your property and the contents of an asset trust correctly held within would not be subject to an individual’s assets for means testing , so yes but talk to your consultant to clarify
How long does a trust last?
A trust can last for 125 years, so the elements placed within your trust can continue to benefit your family and your families family long after you are gone.
Who controls the trust?
You would be named as the ‘Principle Beneficiary’ of the Asset Trust, and would retain control of the assets within the Trust while you are alive and have mental capacity. Then your trustees, who you select would control the trust on behalf of the beneficiaries.