How wealthy families keep their wealth.

David Cameron’s father’s will makes interesting reading.

He left a fortune of £2,740,000 from which the ex-Prime Minister received the sum of £300,000, but what is interesting is that:-

  • He appointed his children as Executors and Trustees.
  • He and his wife owned their home as Tenants in Common rather than joint owners.
  • His half of the home went into Trust rather than directly to his widow.

 

Cameron Will

 

Trusts have been instrumental in mitigating tax since the Medieval times. Trusts were initially created for the Nobility and wealthy landowners to avoid paying taxes to the Crown. Nowadays, you don’t have to be a Nobleman, or a wealthy landowner to want to take advantage of the many tax strategies Trusts can provide.

The use of Trusts ensures that assets are protected from attack from the following.

  • Care Fees
  • Divorce / Separation
  • Creditors / Bankruptcy
  • Inheritance Tax
  • Generational Inheritance Tax

We have advised many clients from all walks of life in protecting their homes and other assets, so that their children and grandchildren can maximise their inheritance, and we have now launched a fixed price package to specifically tackle the above problems at an affordable price for all home owners and from all walks of life.

Firstly you will receive a free no obligation home visit from one of our trained consultants which usually takes about 1hr where you can ask any questions and discuss the matter in more detail.

Once you have decided to proceed we will take all the necessary instructions and then commence constructing a Will each, a Flexible Family Trust each with Memorandum of Wishes and also a Deed of Severance. Within approximately 2 weeks your consultant will return with all the documents for signing.

 

PPT

On first death, the deceased’s share of the property is passed into their Flexible Family Trust via the Will. The surviving Spouse or 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 half a share of the family home.

The beneficiaries have access to the Trust Funds but we ensure that these assets do not enter their estates and so are protected from attack by the following:

  • Marriage after Death – Placing half of the family home and other assets into a Trust on first death ensures that, should the surviving spouse or partner marry in the future, those assets cannot be taken into the marriage and removes the threat of your children being disinherited.
  • Divorce – Placing your assets into a trust ensures if your children or chosen beneficiaries are subject to a divorce then what you intended them to receive is protected from any divorce settlements.
  • Creditors – Similarly if any of your beneficiaries are subject to Creditor claims or bankruptcy then their inheritance would not be exposed to these claims.
  • Care Costs – The trust ensures that they do not add onto the beneficiaries own estates and so cannot be assessed for their care costs.
  • 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.

For more information, please call 0161 771 2056 or simply complete the form below
and one of our consultants will gladly answer any questions you may have.

Finance North
Estate Planning Services
Offices in Cheshire and Staffordshire

www.FinanceNorthEPS.co.uk

 

 

 

“Til Death Do You Part?

Around a third of parents are unwilling to leave an inheritance to their children or provide them with financial aid, as they are concerned that divorce may mean that money leaves the family.

This is according to research from Investec Investment & Wealth, which found that 14% of parents had little or no confidence that their children’s marriages would last a lifetime.

It is perhaps an understandable concern, with around 42% of marriages failing, according to the Office for National Statistics.

There are, however, steps you can take to ensure that your money ends up in the right hands – irrespective of how successful your child might be at finding a long-lasting partner.

Make use of your gift allowance

The research found that one in six parents are opting to give their loved ones small financial gifts to help with the cost of living, rather than large lump sums.

It’s important to remember that everyone has a £3,000 annual gift allowance, covering financial gifts you can hand over each year, free of inheritance tax. On top of that you can give away up to £250 to any number of people each year.

Skip a generation

According to the research, around 14% of parents are skipping a generation and instead looking to leave assets to their grandchildren.

Put it in trust

The study found that one in seven parents are considering putting the money into a discretionary trust, which could be a useful way to protect the money from a divorce.

With a discretionary trust, it is up to the trustees to determine how and when any potential beneficiaries may be able to access the cash. You can appoint yourself as the trustee, so that you have final say over where the money goes, or you can go for an independent trustee. What’s more, the money within the trust is classed as separate from your estate, so it’s free of Inheritance Tax.

It’s important to consider exactly how you want your assets to be divided up among your loved ones, and get those wishes down in the form of a comprehensive will. Speak to our team today at Finance North Estate Planning Services, call 0161 771 2056 or complete the form below and one of our consultants will contact you to help you get your will in place.


Finance North Estate Planning Services
Offices in Cheshire & Stoke on Trent


Effect of divorce on your will

If your marriage ends in Divorce your will is not void or invalid.

What happens is that any gift to your former spouse takes effect as if he or she had died on the date your decree became absolute.

That means the gift falls back into the residue for the benefit of the residuary beneficiaries. But, if you had left everything to your former spouse, then the effect is as if you had died intestate and the rules of intestacy once again decide how your estate is distributed.

Similarly, if by your will you had appointed your spouse as an executor or trustee, the will still takes effect as if he or she had died on the date the decree became absolute.

Even if you had appointed him or her as trustee of a trust for the benefit of the children of both of you, or as a guardian of a child or children, the trust fails. That might not be what you want – although you are divorced, you may still like your ex-husband or ex-wife to be responsible for any children’s trust fund.

So it is best to make a new will immediately after your divorce, especially if your spouse or civil partner was a beneficiary or a trustee.

Don’t delay update your Will as soon as possible.
You do not have to await for the decree absolute.

Call 0161 771 2056 today

Free Will Review Service

Review (1)

Today’s fast and furious lifestyles that we seem to take as standard dictate changes to our personal circumstances frequently, so it makes sense to review your existing Will on a regular basis.

You should review your Will every 5 years and after any major change in your life, for example if the executor or guardian named in your Will dies, you have a new child or grandchild etc. Below are examples of some of the most important times when you should review your Will.

Have you had any life changing events such as :-

Divorce/Separated
Married
Birth of new child/grandchild
Changes in your financial situation
Retirement
Moved home

A Will Review can check that your existing Will protects you and your beneficiaries from :-

Inheritance Tax
Selling your home to pay for long term care costs
Divorce settlements
Creditors/Bankruptcy

How can I receive my free Will review? Simple Call 0161 771 2056 or email help@financenortheps.co.uk with the word “Review” in the header and state your name and contact number and we will call you straight back.

10 Benefits From Making a Will

Have you been thinking for a while about making wills but have never quite found the time to get around to it?

1. Children

If you die and don’t nominate guardians for your children who are under the age of 18 then the local Social Services and the Courts will do it for you.

2. Protect Your Spouse/Civil Partner

If you wish to ensure that your spouse receives what you actually want to leave to them and not have to rely on current government legislation – making wills documents your wishes.

 3. Unmarried Couples

It doesn’t matter how long you may have been living with your partner, in law nothing will automatically pass to them.

 4. Divorced?

How would you feel if your ex-spouse made a claim on your estate?

5. Separation

For those that have separated but not yet divorced – your spouse still has full entitlement on your estate!

6.  Pets

You may be concerned about who will look after your pets after you have gone. One solution is to nominate someone in your Will who you can trust to make sensible decisions for your animals. You may wish to consider a modest legacy to help cover the extra costs involved in caring for the animal and meeting food and vets bills.

7.  Life Interests

Life Interests are increasingly popular among people who have remarried. If you are in a second marriage, chances are that you will have children from the first who may not be happy with the idea of everything being left to your new partner. A Life Interest (particularly in the matrimonial home) is often a convenient way to provide a roof over the head of your spouse or partner and still protect the children’s inheritance in the long term, keeping everybody happy!

8.  Paying less Tax

Careful Will drafting can have a significant impact upon the level of inheritance tax which will be paid. The small cost of making a Will can represent excellent value when compared to the tax savings that can be made.

9. Avoiding Intestacy

If you die without leaving a Will, your estate will be distributed in accordance with a rigid set of rules known as the “Intestacy Rules”. The Intestacy Rules dictate how a deceased’s property and money will be divided. In most situations the rules will produce an outcome that is at odds with what the deceased would have wanted and can lead to dependants suffering unintended hardship or family disputes arising.

10.  Living Wills

If you are of unsound mind or unconscious and not able to make your wishes known to the medical profession they have no way of knowing what treatments – if any – that you may not want to receive. Making a living will removes that doubt.

0161 771 2056 / help@financenortheps.co.uk