Ten Ways A Trust Can Protect Inheritance

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Are you thinking about making a Will or looking at ways of helping your family maximise their inheritance? Do you worry that your child’s inheritance may end up in the wrong hands?  If the answer is yes, then read on to see ten ways a trust can protect your family’s inheritance.

  1. Trusts can receive and manage a range of assets e.g.  Property, Bank Accounts, Investments, Business Interests, Life Insurance or other valuable items.
  2. Assets placed in a lifetime trust can avoid the time and expense of Probate.
  3. You could make substantial savings and reduce your Inheritance Tax bill.
  4. A trust can help adults who are unable to manage money e.g. those with drug, alcohol or gambling problems or those with disabilities
  5. You can be sure that if your spouse remarries after your death that your children can receive some level of inheritance rather than the new husband or wife’s family. There are many examples of when inheritance has been lost following remarriage or re-writing of Wills.
  6. Trusts can be particularly effective in protecting inheritance where there are children from different relationships.
  7.  Managing assets through a trust may reduce the likelihood of family conflict and legal battles.
  8. Trusts can enable children to be provided for whilst they are young whilst protecting their money for the future. This is often preferable to giving money directly to guardians or your children inheriting a lump sum at eighteen.
  9. You can protect your son or daughter’s inheritance from being lost through divorce. This is due to the trust owning the property rather than your son or daughter.  Decisions about the timing and distribution of assets would rest with the trustees.  You can give guidance when setting up the trust to help inform their decisions.
  10. Trusts are a much safer way of planning inheritance rather than gifting away assets – particularly when it involves your home. If you give away all or part of your home to your adult son or daughter, your home becomes their property. Although this may be difficult to think about, just imagine a situation where they got into debt or your relationship broke down – where would this leave you? A Trust can contain conditions that give you protection so that you or your partner may remain in your home.

Want to know more?

To find out more how trusts and estate planning may help you and your family, please call Claudine Jackson on 07725403584 or book online to arrange your no obligation consultation.  If you found this article useful then please don’t forget to share with others using Facebook or Twitter. 😊

 

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