Family Trusts

A Family Trust can be likened to fully comprehensive car insurance.
It protects you against all threats and what-ifs found in modern society.

It is exactly what it sounds like: A safety deposit box and protective wrapper for your hard earned family wealth, set up to protect and preserve your family wealth.

It is for your benefit whilst you are alive and for the benefit of your loved ones, after you have passed away.
Importantly, you retain control as a Trustee of the Trust.

A Family Trust is used to protect your wealth from a number of threats and what-if scenarios.
The benefits include ….

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Avoids the cost of probate (2% of your assets).
It is worth doing for this reason alone. Probate on an average estate of £250,000 will cost around £7,500 plus VAT.

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Protects against sideways disinheritance, after first death.
For example, survivor remarrying / new partner and your loved ones being partially or completely disinherited.

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Planning with absolute certainty.
Most people want certainty from their planning. The Trust Deed (drafted by a lawyers) acts as the rule book for the Trust. As one of the Trustees you retain control and can hire & fire trustees.

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Protection in the event of divorce of a beneficiary, avoiding possible dilution of your loved ones’ inheritance.

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Protection against excluded or unreliable beneficiaries.

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A long-term financial planning tool (up to 125 years) for 4 or 5 generations.

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Avoiding the costs, delays and loss of control of deputyship applications.
By making Lasting Powers of Attorney now, you can choose the people you trust to look after your affairs.

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Achieving complete flexibility.
The Trust is a discretionary Trust, which allows the trustees to take account of changes in future circumstances.

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Protection in the event of the early death of a first line beneficiary, avoiding possible dilution of your loved ones’ inheritance.

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Protection against creditors, or the insolvency of a beneficiary.
This avoids possible dilution of loved ones’ inheritance.

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Avoidance of Inheritance Tax of beneficiaries’ estates.
If your children are already financially independent, leaving money to them directly may just end up with it being taxed at 40%.

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Protection from creditors / means tested benefits (if done for the right reasons and at the right time) for you and your beneficiaries.
For example, if any beneficiary lost their job and was reliant on state benefits.

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Unlike comprehensive insurance you only pay once not every year!

Trusts are not new. They have been used for over 600 years to protect and preserve family wealth within traditional estate planning structures. They are no longer just the preserve of the wealthy. Trusts are now available for everyone wanting to protect and preserve their assets for their loved ones.

Unlike you, or a beneficiary, a Trust cannot die, marry, divorce, be made bankrupt, or lose capacity.

Our Platinum Plan Includes The Following;

 

  • Family Trust(s): Avoiding the cost of probate – Saving around £7,500
  • Two Lasting Powers of Attorney

Avoids deputyship applications – Saving about £4,500, as well as ongoing costs

Avoids loss of control and includes both Property & Financial Affairs and Health & Welfare LPAs, together with our registration costs.

  • One new Will
  • Barrister’s fees, Land Registry fees and property transfer fees.

The only additional costs are the Office of the Public Guardian fees for LPA registration, of £82 per LPA.

Downsides?
Cost and trust administration but, given the savings and benefits, we believe are worth serious consideration.

A Family Trust gives you the maximum amount of protection and certainty that you can have.
It can be used to protect family wealth for future generations up to 125 years and is extremely flexible in being able to adapt to future and unforeseen circumstances.

Contact Us Today To Find Out More

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Head Office : Bespoke Legal Services Limited, Pantiles Chambers, 85 High Street, Royal Tunbridge Wells, Kent, TN1 1XP Company Registration Number: 9598287

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