What sets our Asset Protection Trusts apart from the competition?

Why use Wills and Pilot Trusts?

Assets not protected by a Trust face attack from –

 Care Fees
♦ Marriage After Death
 Divorce or separation settlements
 Creditors or Bankruptcy claims
 Taxation

All of the above threats will also apply to future generations.

Distributing assets absolutely to beneficiaries exposes those assets to risk. When assets are distributed to beneficiaries “absolutely”, (i.e. they receive cash, property or other assets, as a direct lump sum payment) so much can be lost.

These assets are then considered to be part of the beneficiary’s estate and would be at risk of attack from any future divorce settlements, care costs, creditors and taxation.

This is assuming that there is anything left to leave to their children/grandchildren!


Unfortunately, the costs involved in moving into a Care Home can literally wipe out entire savings and the family home may have to be sold to pay for care fees.

When someone enters Care, they are automatically “means tested” and ALL of their assets, including the family home are taken into account. Only those who have very few assets will escape the costs of care.

With the strategic use of Trusts, we can ensure that our client’s children and grandchildren or chosen beneficiaries are able to benefit completely, from the inheritance they want them to receive.

Using the correct Trusts and associated strategies we can provide the protection and control of a multitude of assets from those risks noted above. This protection can extend from the family home, other properties, investment products and liquid assets, Life Assurance, Pension Death Benefits and Business assets.


Many people are aware that there are strategies widely available for those wanting to protect their homes and other assets for future generations, against the threats from any future divorce settlements, creditors and bankruptcy, Care Costs and Taxation.

Here at Finance North Estate Planning Services we been successfully providing these strategies, to our clients.

However, where a client later enters care, having placed a share of their property in a Trust in their lifetime, it has become apparent that local Councils are now fighting these strategies much more aggressively than in past years and the tone of the letters now being sent to clients, or their relatives are extremely worrying.

This has resulted in many relatives, owing to their lack of knowledge and expertise, effectively “caving in”, assuming that they had no choice but to sell the family home, in order to fund the Care fees, when in reality they did not have to do so.

We have been taking on these challenges from Local Authorities, for our client’s with the correct Asset Protection strategies in place and have never lost a case yet!


So confident are we of the success of these strategies, that we offer “The Probate Preservation Plus Trust” which comes with a Money Back Guarantee.

The Probate Preservation Plus Trust (PPPT) is essentially Lifetime Asset Protection Planning. It is available for both Single clients and Couples, who wish to place the family home into Trust in their lifetime, thus protecting those assets from potential attack from:

♦ Divorce
♦ Creditors / Bankruptcy
♦ Testing for Disabled Beneficiaries
♦ Taxation & Generational IHT
♦ Care Fees
Probate Fees & Delays
♦ Costs & Delays from the Court of Protection.

Quite simply, it is a Money Back Guarantee for those who have established the planning, then later entered care and the strategy is subsequently challenged by the Local Authority.

In detail when someone has the need to enter a Care Home, the Local Authority immediately issues the necessary paperwork to be completed for “means testing” (Section 47 Financial Assessment). Our specialist Legal Team will then liaise directly with the Local Authority on the client’s behalf. If a challenge is then made by the Local Authority, all of the Legal costs incurred will be covered (up to a maximum of £500 plus VAT).

We will complete all of the necessary forms and construct any legal arguments necessary, to uphold the planning, and to win the case.

Should we fail to win the case and the client’s home is subject to the payment of their Long-Term Care Fees, then our Money Back Guarantee will reimburse them.

Remember – We have not lost a case Yet!


Our PPPT ensures that, no matter what the client might have done previously, a Chargeable Lifetime Transfer charge will never be payable.

Our PPPT ensures that, no matter what the value of the Property increases to, there will never be a Periodic or Exit Charge payable.

The PPPT ensures that, no matter how much growth in value the Property has experienced, there will never be an “unexpected” IHT liability caused by the Trust.

The PPPT has been drafted to ensure that, if the clients Executors need to benefit from the Residential Nil Rate Band, the property can fall through the client’s Will to Lineal Descendants.

The PPPT ensures that, if the Trust is successfully challenged, the client will get their fees fully refunded


To find out more please contact us below

Finance North Estate Planning Services
Cheshire Office – 0161 771 2056
Staffordshire Office 01782 963 303

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Reasons for a Property Protection Trust

A Property Protection Trust is designed to help and protect your property from creditors including an assessment for long term care fees.

Our Property Protection Trust will ensure that your estate is kept intact by protecting your share of your home (or other property, if required) or the value in it.

We do this by firstly changing Joint ownership of the property to Tenants in Common usually each owning 50% this then enables you to “Will” your share to your chosen beneficiary via your Family Trust.

By leaving your share of the property in a Trust with a life interest to your partner/spouse you safeguard your assets from being lost should your partner re-marry, or be diluted if that partnership ends in divorce. It also protects the trust property from bankruptcy and care costs in later life for the surviving partner.

Importantly the Trust also protects the interests of the survivor, allowing them to live in the property until their death, (or, if required, until they cohabit or remarries.) If the survivor then goes on to remarry, they cannot leave the whole of the property to their new spouse, as a portion is already owned by the Trustees on behalf of the chosen beneficiaries. The survivor can also move house if they so wish, using the whole of the proceeds towards another property, or raise capital by purchasing a smaller property, a greater proportion of which will then be owned by the Trustees.

  • Typical Example

On first death, the Deceased’s share of the property is passed into their Trust via the Will. The surviving spouse/ partner continues to live in the property and is still able to move home if they choose to do so.

In the event that the survivor enters Care, the survivor only owns a half share of a house

 

PPT1

  • Benefits

Care
Holding the assets in the Trust ensures that they do not add onto the Beneficiaries’ own estates and so cannot be assessed for their Care costs.

Marriage After Death
Placing half of the family home and other assets into a Trust on first death ensures that, should the surviving spouse/partner marry in the future, those assets cannot
be taken into the marriage and removes the threat of your own children being disinherited. The survivor is still able to use the assets in the Trust.

Creditors or Bankruptcy
Similarly, if any of your Beneficiaries are subject to Creditor Claims/Bankruptcy then their inheritance would not be exposed to these claims.

Divorce
Placing the assets into Trust ensures that, if your children/ chosen Beneficiaries are subject to Divorce proceedings then what you intended them to receive is protected from any Divorce settlements.

Further or Generational IHT
Holding the assets in the Trust ensures that they do not add to the Beneficiaries’ estates and impact on their own Inheritance Tax

Residence Nil Rate Band (RNRB)
Our trusts ensure that if there are lineal descendants as beneficiaries, the trust will still qualify for the RNRB.

Remember that making a basic double Will
only guarantees what happens on 1st death

 

Without the correct planning, some or all of your children’s or grandchildren’s  inheritance could be lost. However, with a few simple strategies we can protect you and your family from needless expense and worry.

Consider the Facts…

  • Everyone should have a Will, but 2 out of 3 people have not yet made a Will and those that have, may not have the correct Will in place
  • Many of the population lose their homes and / or savings to pay for care.
  • A large proportion of any inheritance is lost in future divorce settlements, to creditors or bankruptcy and unnecessary taxation.

Peace of mind is just a phone call away! Call us today on 0161 771 2056 or enter your details below…

Finance North Estate Planning Services
Cheshire Office – 0161 771 2056
Staffordshire Office 01782 963 303

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This page contains only general planning advice and is not to be construed as advice for any specific personal planning. Each strategy recommended is based on individual circumstances.