You have worked all your life and made investments either with your home or amongst other things, here at Cloud 9 we urge you to make sure your take control of all your assets you have worked so hard for and protect them with a Lifetime Trust.
As we approach later life it becomes increasingly important that all the assets we have worked so hard to build up are protected for the remainder of our lifetime, and, if needed beyond. These assets would typically include our property, savings and investments.
Exactly who do you want to inherit?
When would you like them to inherit?
Is there someone you would prefer not to inherit from you?
In most typical family circumstances, a standard Will would not be enough to ensure:
- That the correct people receive their correct inheritance
- That they inherit what you wanted them to inherit
- They inherit at the right time
- Your estate is not reduced dramatically in value due to Inheritance Tax Issues
In order that we can avoid the risk of serious threats to our assets we should put arrangements in place so that our assets are distributed exactly according to our precise wishes when we do eventually die.
If you decide to do nothing this will mean that if any of these circumstances were to happen, then your assets would be at risk! A Lifetime Trust has the potential to solve most, if not all, of these problems.
- Executor Costs - Did you know Executory/ Probate costs can average £5000 for the simplest estate and can be even more depending on the value of your estate.
- Legal Rights - Your Spouse, Partner or Children may have a legal right to claim against the value of your estate.
- Legal Claims - Your assets may be subject to a legal claim from an outside authority, and, your beneficiaries may suffer from a greatly reduced inheritance as a result.
- Family Disinheritance - If your Will is not reviewed on a regular basis those intended to benefit from your estate may not inherit what you intend for them.
- Inheritance Tax - Failure to properly plan ahead could result in your family or your intended beneficiaries being burdened with an unnecessary tax liability.
- Incapacity - If any of your intended beneficiaries were to lose capacity to make decisions for themselves, then they may receive your inheritance at a time when they are at their most vulnerable.
Many people think that by transferring assets (gifting) to someone else that these assets will be protected under law. It is an unfortunate fact that by doing this all you are doing is losing control of your assets, and, are then at the mercy of the person receiving these assets- who may then subsequently lose the transferred assets by way of their own issues such as divorce, bankruptcy, incapacity or death. Possibly even worse, through selfish reasons, they may choose to do something else with the assets. If this were to happen during your lifetime this could result in you being put out your own home.
If you are unfortunate enough to require long term care, the Local Authority will look at the value of all your assets, this will include your home and any joint assets owned. This will be done to calculate how much if any contribution you will have to make towards your care costs.
If you are married or are in a civil partnership then you cannot be forced into selling your home, however, the council may put a charging order against your property. What this means is that when the property is sold, or indeed when your partner dies, then the council will recoup the cost of the care contribution owed to them from the sale of your property.
A Lifetime Trust may avoid these issues if the Trust is put in place at the right time for the correct reasons.
Note- Any Trust benefits in relation to care home charges will only ever be incidental, Local authorities have very wide-ranging powers which may overlook any arrangement that has been put in place where the principal reason for such an arrangement is for the avoidance or partial reduction in care home costs.
What do I do to set up a Lifetime Trust?
This is normally a 3-step process, but many times it can be done quicker!
An Estate Planning Consultant will contact you for a free impartial assessment of your exact circumstances. You will receive a thorough and detailed explanation of how the Lifetime Trust works, and, all the associated benefits will be fully explained to you. A detailed fact find will be completed, and, will be prepared tailored to your individual and unique circumstances. This will include details of all your assets and will include all assets to be transferred into your Trust. This paperwork will be the basis of the Legal paperwork which is then drawn up.
Is the part of the process when we have a face to face meeting, at your convenience to discuss the points that matter most to you.
A nominated Solicitor from our panel will then be instructed to formally register your Trust, and, they will ensure that all your agreed assets are transferred into your Trust. The Solicitors will act as your professional Trustees, and, will act as such throughout the lifetime of your Trust. You will receive copies of all documentation.