Why family asset protection is important

If you are concerned about how your financial assets will be passed on to your loved ones after your death, family asset protection can make sure that the process goes smoothly.

According to the latest Nomis labour statistics, 11% of the population of Wirral are managers, directors or senior officers. People in professional occupations are 23.3% of the population and associate professional and technical occupations account for 15.7%. All these figures are slightly higher than the average in the UK. These people earn well over the national average wage and, with financial planning, can accumulate large assets.

If you are a Wirral resident who has accumulated assets, you can benefit from asset protection. This helps transfer your assets smoothly after you die, and can also help save inheritance tax. There are several strategies you can use to protect your assets.

Family trust

One of the ways to protect assets is with a family trust. Assets are transferred to the trust, which will have one or more trustees who will hold the assets for the benefit of other people – normally family members.

You could transfer ownership of the family home to a trust with the stipulation that you have the right to live in the house for the rest of your life.

A family trust may enable your loved ones to avoid the legal process of probate if all or most of your assets have been transferred.

Transfer of property

Another asset protection strategy is to transfer the ownership of property to a family member or other loved one in return for support and letting you remain in the property. However, there are risks involved in doing this.

If you give property to a relative on the understanding that they support you, if they cease to do this, legally there is little you can do about it. If the person who receives the house divorces, then a share of the property may be claimed in the divorce settlement. If the recipient becomes bankrupt, a claim could be made against the property.

Shared property

Many couple’s own property as “joint tenants”. This means that should you die before your partner, your share of the property passes on to them automatically. This process overrides anything that you put in your will. If you want your share to go to your children and not the other part owner of the property, you can arrange want is known as “severance of joint tenancy” so that legally you and your partner are “tenants in common”. You can then name a person in your will who will receive your share of the property.

Get advice

There are several strategies that can protect your assets, but they can be complex and difficult for a non-expert to put into practice. Some strategies, such as transferring property, have risks involved.

This is why you need advice on family asset protection. Wirral region residents should contact Endeavour Financial Planning, whose experts will explain the benefits of family asset protection.

TRUSTS, ESTATE PLANNING AND INHERITANCE TAX ADVICE ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY