Why use Wills and Pilot Trusts?
Assets not protected by a Trust face attack from –
♦ Care Fees
♦ Marriage After Death
♦ Divorce or separation settlements
♦ Creditors or Bankruptcy claims
All of the above threats will also apply to future generations.
Distributing assets absolutely to beneficiaries exposes those assets to risk. When assets are distributed to beneficiaries “absolutely”, (i.e. they receive cash, property or other assets, as a direct lump sum payment) so much can be lost.
These assets are then considered to be part of the beneficiary’s estate and would be at risk of attack from any future divorce settlements, care costs, creditors and taxation.
This is assuming that there is anything left to leave to their children/grandchildren!
Unfortunately, the costs involved in moving into a Care Home can literally wipe out entire savings and the family home may have to be sold to pay for care fees.
When someone enters Care, they are automatically “means tested” and ALL of their assets, including the family home are taken into account. Only those who have very few assets will escape the costs of care.
With the strategic use of Trusts, we can ensure that our client’s children and grandchildren or chosen beneficiaries are able to benefit completely, from the inheritance they want them to receive.
Using the correct Trusts and associated strategies we can provide the protection and control of a multitude of assets from those risks noted above. This protection can extend from the family home, other properties, investment products and liquid assets, Life Assurance, Pension Death Benefits and Business assets.
Many people are aware that there are strategies widely available for those wanting to protect their homes and other assets for future generations, against the threats from any future divorce settlements, creditors and bankruptcy, Care Costs and Taxation.
Here at Finance North Estate Planning Services we been successfully providing these strategies, to our clients.
However, where a client later enters care, having placed a share of their property in a Trust in their lifetime, it has become apparent that local Councils are now fighting these strategies much more aggressively than in past years and the tone of the letters now being sent to clients, or their relatives are extremely worrying.
This has resulted in many relatives, owing to their lack of knowledge and expertise, effectively “caving in”, assuming that they had no choice but to sell the family home, in order to fund the Care fees, when in reality they did not have to do so.
We have been taking on these challenges from Local Authorities, for our client’s with the correct Asset Protection strategies in place and have never lost a case yet!
So confident are we of the success of these strategies, that we offer “The Probate Preservation Plus Trust” which comes with a Money Back Guarantee.
The Probate Preservation Plus Trust (PPPT) is essentially Lifetime Asset Protection Planning. It is available for both Single clients and Couples, who wish to place the family home into Trust in their lifetime, thus protecting those assets from potential attack from:
♦ Creditors / Bankruptcy
♦ Testing for Disabled Beneficiaries
♦ Taxation & Generational IHT
♦ Care Fees
♦ Probate Fees & Delays
♦ Costs & Delays from the Court of Protection.
Quite simply, it is a Money Back Guarantee for those who have established the planning, then later entered care and the strategy is subsequently challenged by the Local Authority.
In detail when someone has the need to enter a Care Home, the Local Authority immediately issues the necessary paperwork to be completed for “means testing” (Section 47 Financial Assessment). Our specialist Legal Team will then liaise directly with the Local Authority on the client’s behalf. If a challenge is then made by the Local Authority, all of the Legal costs incurred will be covered (up to a maximum of £500 plus VAT).
We will complete all of the necessary forms and construct any legal arguments necessary, to uphold the planning, and to win the case.
Should we fail to win the case and the client’s home is subject to the payment of their Long-Term Care Fees, then our Money Back Guarantee will reimburse them.
Remember – We have not lost a case Yet!
Our PPPT ensures that, no matter what the client might have done previously, a Chargeable Lifetime Transfer charge will never be payable.
Our PPPT ensures that, no matter what the value of the Property increases to, there will never be a Periodic or Exit Charge payable.
The PPPT ensures that, no matter how much growth in value the Property has experienced, there will never be an “unexpected” IHT liability caused by the Trust.
The PPPT has been drafted to ensure that, if the clients Executors need to benefit from the Residential Nil Rate Band, the property can fall through the client’s Will to Lineal Descendants.
The PPPT ensures that, if the Trust is successfully challenged, the client will get their fees fully refunded