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Family Protection Trust

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Happy old couple

 

FAMILY PROTECTION TRUST

  • Have you worked hard your whole life, paid tax and national insurance?
  • Have you made sacrifices along the way, not going on holiday, not buying that car, paid off a mortgage?
  • Has this lifetime of hard work been spent to ensure you leave your loved ones as much as possible? Or at least have a choice as to whom and how much you leave?

If the answer is YES to all these questions you need to ensure your assets are protected. You need to have a will, but if there is nothing to leave, it’s just a piece of paper.

 

PROBLEMS

Problems

 

PROTECTING THE INHERITANCE

A Family Protection Trust
The Family Protection Trust from WLS allows you to leave your family the majority of their inheritance in Trust, ensuring it goes to them and not to someone else or another institution.
How does it work?
To put it simply, a Family Protection Trust is like a safety deposit box, where you can put your house and any other financial assets.

House
safe
This ring-fences those assets and protects them against risks that may arise in the future.

 

PROBATE COSTS AND ADMINISTRATION

Probate is the legal process of administering the estate of someone who has passed away. It can be expensive and time-consuming. Most people will use their bank or solicitor to help. On average they charge 3% of the value of the estate to carry out the work

  • Up to £100,000 – £3,000
  • Up to £200,000 – £6,000
  • Up to £300,000 – £9,000
  • Up to £400,000 – £12,000
  • Up to £500,000 – £15,000
  • Up to £600,000 – £18,000

 

PROBATE BENEFIT

For any assets you hold in in trust, there is NO probate. With an average fee of 3% a Family Protection Trust offers a significant saving, not only in terms of money, but in the actual time and effort it saves for loved ones at a stressful time.

 

CHILDREN INHERITING AT THE WRONG TIME

Loved ones don’t usually get to choose when they inherit. When the time comes it may not be the best time for your loved one to receive their money:

  • Divorce – a portion of the inheritance can go to an ex-partner
  • Bankruptcy – inheritance can go to creditors
  • Benefits – means tested benefits can be lost or reduced
  • Drug or alcohol dependency
  • Children’s IHT – If one of your beneficiaries has an estate of over £325,000, they may have an inheritance tax liability. Any money you leave them above this amount could eventually be taxed at 40%.
  • By leaving the inheritance to loved ones in a Trust, the assets do not form part of their Estate.
  • They can then choose a time that’s right for them to take the inheritance e.g. finalise the divorce or bankruptcy then take the inheritance
  • They can still draw from the trust, spend it, but whilst held within the inheritance is protected.

 

SIDEWAYS DISINHERITANCE

With second marriages becoming more common, it is possible that inheritance can pass to another family. A Family Protection Trust can ensure your share always goes to your loved ones.
sideways

 

DEPENDENT RELATIVES’ CLAIMS

  • Families can can be complicated and sometimes parents fall out with their children.
  • Even if you have disinherited a child, by law, that child can still contest the will and claim against the estate.
  • Recent case law means they will probably be successful when claiming.
  • Unlike a Will, it’s very difficult to contest a Trust

 

CONTROL

  • In the eyes of the law the house is actually owned by YOUR trust, and not by you as an individual, therefore protected against various dangers
  • However, the assets are still in yours. Every trust need to have Trustees, the people who are in control, and that’s YOU….
  • Every Trust needs to have Beneficiaries, the people who are the benefit from what is held within, and that’s YOU as well.key
  • You can still move, invest and do anything as you normally would.
  • Your Will is what you want to happen, the Trust makes sure it does!

 

 

WLS TRUSTEES

At no extra cost you can have our solicitor as a professional trustee alongside yourself and a family member if you wish.

This has a number of benefits:

  • We are one of only a handful of companies who specialise in these trusts.
  • We have a proven track record and will deal with the Local Authority on your family’s behalf if required.
  • Our advice will continue after you have passed away to ensure your loved ones inherit 100% of what they are due at the right time.

 

COST

  • The cost for setting up the Family Protection Trust and protecting a lifetime of hard work is:
  • £2,790 for a single person
  • £3,945 for a couple
  • To put this into perspective, that’s usually far less than a professional would charge for probate work and far less time.
  • This fee not only protects the inheritance but offers a significant saving in many cases.

PROCESS

It takes around 4-5 weeks to set up a trust.

Nothing is binding until you have seen the trust documents and are happy with the content.

We hold your hand through the whole process.

We can get the ball rolling with a small deposit with the rest payable on signing.

 


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