A family asset trust (sometimes known as a family protection trust) is a way to protect your wealth for the benefit of your family when you die. Wirral families looking to set up a trust should contact Endeavour Financial Planning today to discover how our expert advice can help you.
Of course, you want to pass on as much of your wealth and assets as possible to your family. You could pass on your wealth, including your home, to your family before you die but this means you will lose control over your wealth for the rest of your life.
In fact, there are several things that could go wrong. If you transfer ownership of your home to one of your children and they become bankrupt, you could lose your home. If a member of your family divorces, part of your assets could go towards settling the divorce.
Benefits of a family asset trust
A family asset trust is in your name. Under the terms of the trust, you can nominate who will benefit from your wealth after your die. If, for example, you have children from a previous marriage, then the trust will ensure that they will benefit.
If you need residential care you may be asked to sell assets, including your home, to cover the care costs. Any assets in a family trust are usually protected.
Save on estate administration fees
After you die, your family may appoint someone to administer your estate, but the cost of this can run well into five figures. A family asset trust means that it may not be necessary to appoint an administrator. It costs money to set up, but there will not normally be any fees after this.
Flexibility
To set up a family trust, you will need trustees who are usually the family solicitor, yourself and members of your family.
A family trust is reversible in that you can decide to close it down at any time and transfer all the assets back to your individual ownership. It’s also flexible; if you want to sell your trust-owned home, you can do so as long as the trustees sign the paperwork, and assets can be added to the trust at any time.
A family trust should not replace a will, especially if you have some assets not included in the trust that you want to leave to a named person.
To protect your family assets, speak to Endeavour Financial Planning. We can explain all the benefits of a family asset trust.
Trusts and Estate Planning advice are not regulated by the Financial Conduct Authority.
