The Goodwills Lifetime Family Asset Protection Trust
Not all trusts are the same.
You can call us for more information based on your specific circumstances on 01666 744002
What is a Lifetime Family Asset PreservationTrust
A Lifetime Family Asset Protection trust is a lifetime trust set up for the provision of your beneficiaries. It is very good at helping with Estate Planning, IHT Planning and protecting and preserving assets.
How does a Lifetime Family Asset Preservation Trust work?
You can appointment beneficiaries to benefit from the assets in the trust, trustees to ensure that the trust is ran and distributed as you would prefer, and you can write a letter of wishes explaining to the trustees how you would like them to act in different situations.
The assets no longer form part of your estate for probate and ownership purposes. Depending on whether you benefit from the assets or not determines whether the trust can reduce any inheritance tax liability.
How does the trust protect and preserve assets?
The assets in the trust will not normally be used for divorce settlements, paying for long term nursing home care, or claimed by creditors for you and any of the beneficiaries unless it can be determined that you put the assets in the trust to avoid any of these yourself and the event had a strong probability of happening.
How can the Lifetime Family Asset Protection Trust help with IHT Planning?
If you give up the right to the assets, then putting assets into the trust can be classes as a Lifetime Transfer or a Potentially Exempt Transfer depending on the amount put into the trust. This can reduce any potential Inheritance Tax liability if you live for three years or more. If you live for more than seven years then the IHT liability on these assets coould be mitigated altogether.
How do beneficiaries get their inheritance?
Trustees can distribute or loan assets or provide income to the beneficiaries in accordance with your letter of wishes.
Why would the beneficiaries get a loan?
Loaning assets can help with IHT planning and keeping the assets in the family.
How long can a Lifetime Family Asset Preservation Trust last for?
The trust can run for 125 years. It is a great tool for passing assets through generations.
What about beneficiaries yet to be born?
The Asset Preservation Trust allows for different classes of beneficiary. The letter of wishes can help trustees decide how additional beneficiaries can be included.
Utilise our expertise!
Don't worry if it all seems quite complicated. Our role is to hold your hand every step of the way and answer all the questions you might have. Goodwills Wilts and Glos can provide a home visit service within many parts of Wiltshire and Gloucestershire or you can visit a senior client consultant in their offices in Malmesbury. Please contact us for an initial consultation or should you have any questions.