It might help to think of a trust as a safety deposit box for you to keep your assets in. You can pass your assets to a family protection trust established in your name and for your benefit whilst you are living – but why?
Placing your assets into a family protection trust should ensure that they pass to the people you want after your death, according to the terms of the trust, or under the terms of your will. The inheritance due to any unreliable, divorcing or bankrupt beneficiaries can be protected by the trust and be passed to them at a more appropriate time.
If you originally planned to leave everything to your surviving spouse or partner, but have children from a previous relationship or marriage that you would like to ultimately benefit, then the trust can be used to protect their intended inheritance.
If your beneficiaries’ estates are liable for inheritance tax, you can protect their inheritance from the effects of taxation for themselves and for their future beneficiaries.
The value of the trust won’t be eroded by the cost of administering your estate (probate costs) or by the possible cost of residential care in later life, if needed, subject to the rules on deprivation of capital.
When the trust ends your trustees will pass the assets to your beneficiaries without having to follow any complicated processes or procedures and without having to apply for a grant of probate.
Cost for single lifetime family protection trust: £1590.00
(including drafting of will and lasting power of attorney)
Cost of couple lifetime family protection trusts: £2490.00
(including drafting of 2 wills and 2 lasting powers of attorney)
The above fees include fees payable to solicitors (incl VAT) to draft trust document(s) and to transfer assets into the trust, and Land Registry fees. The prices do not include a first registration of your property, if required. Additional fees may also apply if your property is leasehold. An ongoing management fee may also apply if you are transferring Income bearing assets into the trust.
