Why is a Family Protection Trust a Great Idea? Will & Estate Planning Advice

Making a Will is extremely important as it outlines your wishes for your estate. But how would you feel if external factors prevented your Will being administered as per your requests? At Wills Made Clear we are seeing more customers turn to us to help set up a Family Protection Trust for their estate in addition to their Will.

What is a Family Protection Trust?

A Family Protection Trust allows you to ring fence your assets, protecting them against unforeseeable issues that may arise in the future. Quite simply, it acts much like a safety deposit box, keeping your house and any other financial assets safe. These assets remain yours to do with as you wish; however the law legally recognises them as owned by your 'trust' - so all trustees hold a key to your safe.

What are the top 6 problems I could face with my will?

1 - Probate

Probate can be a very expensive and time consuming process, sometimes taking 9 - 12 months to complete. However, any assets that you hold in a trust do not have to go through the probate process, and are usually released to beneficiaries within 28 days of the death being recorded.

2 - Sideways disinheritance

If you or your partner dies and the living partner re-marries, your children could inherit nothing as the estate can pass to the new family. This is not the case for assets placed in trust.

3 - Bad timing

No, we're not talking about the time of death! However, it is often overlooked that when assets are released at the end of the probate process, it may not always be the best time for your beneficiaries to inherit. For example, they could be in the process of a divorce, meaning their inheritance could form part of the divorce settlement.

4 - Contesting a will

Unfortunately we are very aware that family situations can be complicated, and sometimes a parent may choose to leave a child out of their Will. By law, that child has a right to make a claim on the estate; however it is much more difficult to contest a Trust, making it much less likely that your assets would be passed to a family member that you do not wish them to.

5 - Later life care costs

Currently, anyone with assets above £23,250 are not entitled to receive state help with Care Costs. This has led to many families needing to sell their home to fund Care requirements. However, many of our clients have found that the assets held within their Family Protection Trust have not been considered during care fee assessments.

6 - Inheritance tax

Any assets left to your children in Trust will not form part of their estate and therefore not attract Child Inheritance Tax claim (IHT).

So what are you waiting for? Contact us about setting up a Family Protection Trust today!

How do I get help with writing my will?

At Wills Made Clear we have over 30 years experience helping people choose the most beneficial way of managing their estate. Please do get in touch with us if you need help writing a will or with your estate planning - info@willsmadeclear.co.uk.