Family Trusts are an effective way of protecting your assets. This does not need to be a complex or costly exercise and with some careful planning, putting provisions in place now could protect your assets in the future by looking into a Family Trust.
Why set up a Family Trust?
Here are a few common assets that you can protect.
- Bank Accounts
- Valuable Items (i.e Antiques, Paintings, etc.)
Family Trusts can also be put in place to handle the affairs of minors or people otherwise unable to manage their own affairs. They allow you to pass on your assets in accordance with your wishes, either during your lifetime or after your death. There are many reasons for setting up a Family Trust fund but primarily it gives both security and peace of mind to all parties involved.
Here’s what Family Trusts can do.
It’s all about protecting the family.
- An individual becoming incapacitated through an illness or accident may similarly not be able to manage their assets correctly. Again, the assets are placed into a trust and the trustees would manage it on their behalf.
- A Family Trust being set up to secure investments for a certain period of time. An example might be of a settlor locking away money in a trust for future university fees, a wedding or a birthday.
- Even with a Will, probate is required on all estates with assets over £5000. Probate on average takes up to 6 months with a Will and up to 2 years without a Will. A house owned by the deceased cannot be sold straight away. A house and other assets in the Family Trust are not subject to probate. Therefore, there are significant cost savings and the home can be sold or transferred by the Trustees immediately after death with no probate formalities.
- No Sideways Disinheritance (Read a Sideways Disinheritance Example from our Blog) – Assets that pass down to your children can be ring-fenced to pass directly on to your grandchildren on your child’s death rather than pass sideways to your son in law or daughter in law, who, if they were to remarry could possibly disinherit your bloodline.