There are 5 key problems which may be addressed through the proper use of Trusts set up in ones lifetime.
1 Probate Costs – The estates of a Husband and Wife, if administered by a traditional High Street Solicitor, may lead to total legal costs of £15,000 – £25,000 on a relatively modest joint estate which includes a property. However, if the couple’s assets had been placed in a Trust then there would (providing assets kept outside the Trust are modest) be no legal requirement for a Grant to be obtained.
2 Sideways Disinheritance – If one spouse had died, and the survivor remarried but had not got round to making a new will, then on his/her death there is a danger that the children of the deceased would not receive anything as of right. Instead, Intestacy rules would result in the family of the new wife/husband taking all. Again, if a Trust had been in place then the original intended Beneficiaries would be provided for by the Trustees.
3 The need not to rely on Children – Many couples believe that their own children will ensure they are always well cared for, and in believing this may perhaps transfer the Family Home to their children. However, the children may themselves experience issues such as divorce or bankruptcy in their own lives, placing their entire assets under threat.
4 Incapacity – Should one or both spouse lose capacity, it will be too late to plan for Asset Protection and there may be delays (or impossibility) in putting in place a Lasting Power of Attorney (LPA). By having assets held in Trust then the Trustees would immediately be in a position to act in respect of assets and there would be no need to incur the expense of LPAs.
5 Residential / Nursing Home Care Fees – one in three women and one in four men will go into care. For the year 2015-2016 only the last £14,250 of the resident’s assets will be protected from the need to pay the Local Authority for care. Everything above £23,250 is vulnerable. The use of asset protection trusts will under current legislation protect the assets of a couple or a single person, for the benefit of the family as a whole.
If you require further information about Asset Protection services, please contact DRA Conveyancing Ltd, Derek R Adkins, Licensed Conveyancer, for a no-obligation consultation in our offices, or in your own home. Use the ‘Contact Us’ section of this website to provide a brief outline of your enquiry and we will contact you at the very latest within 24 hours.