If you’re worried about your assets not reaching your loved ones after you’re gone then you may want to think about a Family Protection Trust. A trust works like a safety deposit box, ensuring that your family’s future inheritance is preserved for their benefit.
Simply put, a Family Protection Trust can be defined as a product for ensuring that your assets are passed on to the people you choose after your death, based on your will or the terms of the Trust. With a Family protection trust in place, you can have more control over your assets and reduce future legal costs.
What you should know about a Family Protection Trust
In later life, the cost of care in residential care homes is often paid by the care recipient, and assets will be sold to cover the expenses of the care. 1 in 3 women and 1 in 4 men over 65 will go into care, with the cost often covered by your assets, including your home. Assets under a Family Protection Trust cannot be sold to cover these expenses and remain for the people you planned it for.
Other important things to know are that a Family Protection Trust, you automatically avoid the payment of Probate fees of up to 5% of the estate’s value. A Family Protection Trust also prevents your children from being disinherited in case of remarriage, although if you don’t like your kids you can choose to exclude them from your Trust.
What can I gain from a Family Protection Trust?
Aside from the benefits of protecting your assets as you get older and in the event of your death, a Family Protection Trust also has the added benefit of protecting your assets in the event of bankruptcy. Any inheritance left to your loved ones in a Trust is also protected from law suits, as well as divorce.
Assets left in a Family Protection Trust will stay in your family and are handed down to the next generation in case your child dies too. Your children can also use the trust to protect their own assets.
Are there any draw-backs I should be aware of in a Family Protection Trust?
Some people have complained about the cost of getting a Family Protection Trust. It’s all about weighing up the pros and cons for your life. The need to file annual tax returns for can be seen as an unnecessary administrative burden, and a disadvantage of a Family Protection Trust.
If a there are separate trust accounts, it is a bit harder to administer and manage. But a Family Protection Trust works well only if parties abide by the rules of the Trust. A Family Protection Trust will require stronger control if you are using independent Trustees
What should I expect from a good Family Protection Trust Firm?
A good Family Protection Trust firm is upfront with fees so there will be no hidden charges. Expert solicitors will be provided as trustees with no extra costs. The firm will have policies that will prevent them from benefiting from your Family Protection Trust, thereby making them 100% obliged to act in support of your wishes. Firms, like Golden Charter, have policies that defend any claims against your Family Protection Trust and ensures the beneficiaries inherit at the proper time. A good reputation and reviews from customers should set you in the right direction towards a good, reputable Family Protection Trust Firm.
A Family Protection Trust is a great way of ensuring your assets stay in your bloodline and you get to safeguard a legacy for generations to come.