Asset Protection Trusts

One of the most important benefits of planning ahead is to help give you control and protection of your assets (such as your home) and any savings or investments you may have.

This may seem very complex but can be achieved through various ways such as a Family Asset Protection Trust’.

Sideways dis-inheritance is a major concern for couples who wish to pass their assets on to their children on second death.

An example of a potential problem would be if the surviving spouse re-marries and then subsequently divorces meaning the assets owned by the first spouse (who thought they would go to the children) could be lost in divorce proceedings or the surviving spouse could re-marry and die without making a Will, meaning the surviving spouse would receive the majority if not all of the assets and the children from the previous marriage receive very little or nothing.

Many people arrange the Family Asset Protection Trusts (FAPTs) to offer protection from such scenarios.

Some of these Trusts are set up when you are still alive. These are commonly known as ‘Lifetime Trusts’ while others, known as ‘Will Trusts’, come into play once you have died.

The Lifetime Trust’, allows you to shelter any assets you have, such as your home, in a Trust. Once the Trust is set up, it provides protection for any assets transferred into it and can help to make sure you leave as much as possible to your loved ones.

Unlike a ‘Lifetime Trust’ which is set up when you are alive, a Will Trust is set up once you have died.

In simple terms, rather than transferring everything in your share of the estate to your spouse or partner when you die, it is put into a Trust. By doing so, you are putting a protective arm around your assets, ensuring your loved one’s benefit.

If you have any questions about FAPTs or any of our services
simply get in touch with us on 01942 795795