There are other types of Trusts which can be set up during your lifetime for the benefit of ring-fencing your assets. These are often referred to as Asset Protection Trusts. These Trusts can handle money, capital investment bonds and also real property.
Making the decision to transfer your home into a Trust is a big one. There are important questions that need to be addressed to ensure it is the right one for you. Our advisers will be able to help and will suggest a better alternative if one is available.
Your home is often your biggest asset and the asset you most want to protect for future generations. Putting it into Trust is a process whereby you hand over the legal title of the property to the Trustees of your Trust. You still have the right to live in the property and enjoy it, and it can still be sold if you need to move, for example, but the Trust is managed by the Trustees in accordance with the Trust Deed (which outlines the rules and conditions of the agreement).
Advantages of setting up an Asset Protection Trust are that it can ring-fence your assets, protect personal assets from third party creditors such as business debts, protect assets against sideways disinheritance, and may mean that due to the size of your estate, it can save time and hassle for your Executors when dealing with your estate administration, also potentially resulting in reduced probate costs.
One of the Trusts we offer also allows the facility to utilize the Residence Nil Rate Band on top of the current Nil Rate Band thus allowing a married couple to have an increased Inheritance Tax threshold available to them on death. This is a very useful tool in the Inheritance Tax assessment.