Family Protection Trust
Trusts have become a vital financial planning tool for ordinary people with relatively modest assets. A Family Protection Trust (FPT) is a deed which is simple and inexpensive to establish an then acts as a legal “safe deposit box” for your assets designed to protect your estate against tax and probate charges.
Unless you create an FPT, then before any of your assets can be passed on as you intended, various tax, local authority and legal people may receive part of your estate. Even if you don’t think of yourself as rich, your successors may lose thousands of pounds which you intended them to enjoy.
An FPT can eliminate probate costs and enable your estate to be administered more efficiently.
Your FPT can achieve many planned beneficial outcomes including:
- Creating a family wealth protection tool that can be used for up to 125 years
- Control over the handling and distribution of assets
- Possible tax benefits if combined with specific investment advice
- Faster, cheaper distribution after death
- Protection of assets from family circumstances and creditors.
An FPT provides access to your hard earned wealth at all times - it can be cancelled subject to the costs of doing so.
By locking-up your assets in the Trust you can protect them – from family circumstances such as second families or divorces, or from financial disaster such as bankruptcy- and also from creditors: and whilst we would not recommend establishing a Family Trust as a method of deliberately removing assets from means testing, where the Family Trust is being set up for the other reasons mentioned, then the assets held within the Trust should not be taken into account for the purpose of assessing your liability for care home fees.
There can be arguments about what your motivation for setting up the Trust was, but under current rules Local Authorities are told that they should not infer that someone has deliberately tried to remove assets form means testing if at the time the Trust is set up you are in good health and not likely to go into care in the foreseeable future. Future legislation may of course bring changes, but as things stand you may be able to save many thousands of pounds in care home fees.
Everybody planning for their future should consider making an FPT. Couples often wish to make “mirror” FPTs whose provisions reflect one another.
How long will it take?
The time our work takes to conclude will depend on precisely what we are asked to do, but we would generally expect to have taken your instructions within two days of you having bought this product, and we would normally expect to have produced a useable template within 4 working days of your decision to buy the product. Special dispatch may be available where necessary (possibly at extra charge in some cases – please ask).
We will give you all advice necessary to complete the objective outlines, such as:
- Completing the Trust itself
- A revised Will, when required
- Conducting relevant filings with HMRC
- Carrying our property transfers if required
- Offering trustee services if required (not included in the fixed price).
Our work will be charged at a fixed-fee of:
- £2,395 inc VAT for a Single Person Family Protection Trust
- £3,350 inc VAT for a Couple Family Protection Trust.
Our fee applies regardless of how much work we actually do. In some cases this may mean we’ll get relatively better paid for doing less work than in other cases, in which the fixed fee will barely cover our costs. This is simply the nature of the mutual ‘gamble’ between a solicitor and their client when they fix a fee.
More detail of all these matters will be outlined in our retainer letter which you will be able to review before you engage us, after pressing the “Buy” button on the website.
If you have any questions or require any further information, please don’t hesitate to Contact Us..