Asset Protection Trusts

Asset Protection Trusts are a specific type of Discretionary Trust which provide an extremely good way of protecting and ring fencing assets such as your home and Investment Bonds.

ASSET PROTECTION TRUSTS PROVIDE ENORMOUS PEACE OF MIND IN ESTATE PLANNING

People use them for different reasons, for example, to take control of long term care home fees, to prevent assets being accessed by beneficiaries creditors, or to protect legacies left to your married children should their marriages end in divorce.

Other concerns might exist around second marriages; should a widow or widower remarry in the future they may want to protect any legacy from their deceased spouse from passing to the new spouse rather than to their children. 

Why you should set up an Asset Protection Trust

The idea behind an asset protection trust is to give benefit of use without ownership.

  • It protects against future expenses such as Probate costs (can be thousands) as well as other costs encountered in later life.

  • It can prevent future beneficiaries losing money through divorce or bankruptcy.

  • It can be used by your children to manage their own assets.

  • Your Will remains valid.

  • Although you “give your assets” to the Trust fund you retain complete control as the Trustees. You can still move house or invest money as you see fit.

Asset Protection Trusts are often advertised as a means of protecting you from having to sell your home to pay for care home fees

  • Asset Protection Trusts should be set up when you are still fit and healthy with a view to reducing end of life costs.

  • If you set one up when you’re about to go into a care home it will be seen as avoidance and the local authority can still charge you accordingly.

 PLANNING YOUR ESTATE IS ARGUABLY THE BEST THING YOU CAN DO TO PROTECT YOUR FAMILY AND FINANCES.

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    WillsLasting Powers of AttorneyInformation for CarersEmergency Wills