Asset Protection Trusts
Asset Protection Trusts (APTs) are important estate planning tools for those who wish to protect their assets from many concerns including:
- Ensuring your inheritance wishes are carried out
- Protection from sideways disinheritance
- Inheritance tax (IHT) planning
- Protection of inheritance from beneficiary creditors
To Protect Assets
To protect hard earned assets/property/business from any future regrettable relationships, liaisons, bad business decisions and people who may squander assets.
To preserve assets to prevent them from being depleted sooner rather than later (i.e. where a family member has something that may impair their ability to make sensible use of the assets- alcohol, drug addiction or bankrupt).
To ensure that funds are preserved for a specific group of beneficiaries (i.e. ensuring that funds that will be used or needed by a surviving spouse has passed away or formed a new relationship leading to sideways disinheritance).
To Protect Beneficiaries
Where you have built up your estate through hard work and you want to offer your children a better life, but if the children are irresponsible with money. Assets can be put into a trust, not to prevent children from making poor choices, but to provide a guide in the form of a Trustee.
If your child has a disability that means they will never be able to manage their own resources and affairs, a trust can ensure the child will be properly provided for and kept from underhanded friends or carers.
If you have a child who is not disabled but is vulnerable through the use of drugs or alcohol and leaving a large some of money to them directly may pose a risk to their lives. You may wish to have the money managed for them by a Trustee, to provide a roof over their head and to ensure they are safe.
To Treat Capital and Income of a Gift in Different Ways
If you would like certain categories of people to benefit. If you have a spouse or partner who is financially dependent on you, they can be given an interest in possession of assets/property and also access to the income, however, the capital of the trust fund can be reserved for the children.
If your beneficiaries are too young to manage large sums of money, a trust can be used to protect the money and the trust fund can then be used for the maintenance until they reach a certain age, upon which the capital will pass to them.
What is an Asset Protection Trust?
We can advise, implement and adminster a number of different forms of trust including:
- Flexible life interest trust (FLIT)
- Discretionary trust
- Bereaved minors trust
- Nil rate band discretionary trust
- Disability trust