Family Trusts

Free Asset Trusts Information Pack

What is a Family Trust?

Family Trust as like a legally created ‘safe’ into which you can place your property, savings & investments, life insurance and any other valuable assets that you wish to keep secure during your lifetime and beyond.

Lifetime Control of your assets with a Family Trust

A Family Trust gives the key to the ‘safe’ and when you die this key is passed on to your spouse and family.  So during your lifetime you have complete control of the key to the ‘safe’ and you have complete flexibility to add or remove assets from the ‘safe’ at any time.

Main Benefit of Family Trusts

No-one else can ever have access to the assets that you have placed in to the ‘safe’, as the Family Trust is a separate legal entity from you and it owns all of the assets that you have placed within its “Safe”.

History of protection from Family Trusts

This legal protection is enshrined in English Trust law which has been in existence from the Middle Ages and is the foundation for Trusts worldwide.  Trusts are used all the time to protect assets.

After your death, the ‘safe’ and its contents pass to the beneficiaries that you have chosen to receive them.  The beneficiaries can continue to use the Family Trust themselves or they can end it and receive the assets according to the terms of the Trust. The lifetime of a Trust is currently limited to 125 years.

All of the benefits of a Family Trust for us…

Reduction in professional fees

  • Assets within the Family Trust are passed on immediately upon death and do not therefore incur any professional charges for handling probate.  This alone will save us over £20,000 in professional fees.

No Children’s Inheritance Tax Liability

  • Children’s Inheritance Tax Liability.  Assets passed on to our children will not form part of their estate for IHT calculation if they are kept in the Family Trust.  These assets are available to be used by the children but the Trust allows them to plan ahead to minimise any IHT liability that they, or even their children, might incur.

No loss of assets through sideways disinheritance

  • A Family Trust allows us to ensure that after our deaths the family will benefit from the Trust and assets cannot be lost for instance by one of us remarrying.  This is commonly known as sideways disinheritance.

Assets within the Family Trust are not means tested

  • Assets correctly held within the Family Trust cannot form part of our estate for means tested benefits such as disability allowances or care fees, whether in our own home or in a residential care home should we ever need them.  The Trust is a separate legal entity from the person setting up the Trust and therefore must be treated as such when calculating a person’s means.

Appointed Trustees can manage inheritance for the beneficiaries benefit

  • One day we might have a child or other relative who has a disability who we want to benefit from our estate.  This could be a mental, physical or psychological disability including addiction. Having a Trust in place means that we have appointed Trustees to manage their inheritance for their benefit.

Should loss of mental capacity take place, you have the right people appointed

  • Having a Family Trust also ensures that should either of us lose mental capacity in the future we have appointed the people we trust to manage our affairs, without any involvement from the Court of Protection.

Book a Free consultation with a specialist Family Trust consultant in Wales, today!

If you would like to know more about why a Family Trust in Wales could benefit you and your family please have a look at our Family Asset Trust in Wales page or request a free consultation with one of our specialist Wills Trusts and LPA’s Wales consultants in Wales.

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