Trusts, as well as often being set up when a person dies, can be created in one’s lifetime. Trusts are increasingly being used to avoid the need to obtain a Grant of Probate after a person’s death, and for Asset Protection. The objective is to protect assets for the benefit of the family as a whole, that is for the ‘settlors’ (the persons placing assets in their own trusts) and for their children and grandchildren.
Funds and assets (including of course the Family Home) can be placed into Trust and providing this is carried out correctly the result will be that the assets are held by the Trustees of the Trust and would therefore be protected from claims by any party not identified in the Trust Deed as a Beneficiary. In addition, Trusts continue to be an important means of mitigating against the risk of paying Inheritance Tax. This is currently charged at the rate of 40% of all assets above a single person’s current limit of £325,000.
The average cost of obtaining probate on a £300,000 estate was over £11,000 via the Big 5 Banks and over £9,000 from High Street Solicitors. – The Guardian, 2009
By having your main assets in a trust, it is likely that Probate costs will be minimal, if not eliminated altogether.
If you require further information about Trusts services, please contact DRA Legal, DRA Conveyancing Ltd, for a no-obligation consultation in our offices, or in your own home. Fill out the message form on the contact page to provide a brief outline of your enquiry and we will contact you at the very latest within 24 hours.