Family Protection Trusts
I’ve been approached about setting up a Family Protection Trust – what do I do?
We are often asked this by our clients. They have been told that setting up this sort of trust can help them protect their assets from being depleted in a whole host of potential scenarios.
Our advice is simply this……………. tread carefully.
A Family Protection Trust, often called an Asset Protection Trust, is the name given for a trust routinely put in place to set aside assets for a specific reason, albeit just with a fancier name. The aim might be to protect the family home from being eaten up by care home fees, or perhaps there is a concern that the hard-earned family inheritance will not pass down to descendants as a result of a second marriage.
Whilst these types of trusts can be useful in certain situations, regard must be had to a whole host of factors and personal circumstances. You must consider the size of the estate, the need to access finances to support you during your lifetime and the type of care you might want in later life.
Regard must also be had to the rule against deprivation of assets which allows a local authority to investigate the gifting away of assets. If they find that the gifting has taken place to purposely avoid paying care home fees, they can seek the costs back.
If you are considering putting anything into trust or perhaps gifting assets away, we strongly recommend that you seek legal advice from professionals who are trained and qualified in the field.
Our experienced Wills, Trust and Probate team can guide you through this process. Contact our team by calling 01752 827920 or by emailing firstname.lastname@example.org.
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