There are a number of options, besides a Will, for protecting your assets and ensuring the welfare of your family after you are gone. A Lifetime Trust is one of those options. At Trusting Willpower Ltd in Cardiff, we can help you understand whether such a Trust could be the right options for you.
So, what are Lifetime Trusts?
Lifetime Trusts are more also known as Land Management Trusts or Wealth Security Trusts.
Unlike Will Trusts, which are created after death, Lifetime Trusts are created immediately. A common form of Lifetime Trust is created by settling a property (either your home or rental property) into the legal ownership of the Trust.
However, if it is your home, you still have the right to live there (although you may need to pay some rent to the Trust to maximise the tax efficiency).
There are some limits to what a Lifetime Trust can do, however.
You cannot use it to “hide” your assets for Estate Planning purposes, as there are rules which HM Revenue and Customs have which mean that the amount you can leave to your beneficiaries without paying Inheritance Tax could be reduced.
We always advise that you seek professional legal advice
Should you need to have professional care, either at your home or by going into a nursing home, your contribution to these fees is based on the value of your assets. Should you put some of your assets into a Trust, a Local Authority might decide that this is a ‘Deliberate Deprivation of Assets’.
If they do, the value of the property could be deemed to be yours when they calculate how much you need to pay towards your care fees.
It is therefore vitally important to take professional advice when considering putting your property into a Lifetime Trust, as a professional gives you tailored advice to protect against this.
Lifetime Trust for specific named Beneficiaries
FULL COST (10% DISCOUNT) £2,250
50% ADVANCE DEPOSIT £2,500
Lifetime Discretionary Trust
FULL COST (10% DISCOUNT) £2,700
50% ADVANCE DEPOSIT £3,000