This may seem very complex, but in essence can be achieved through a number of different plans that are known as ‘Trusts’.
Sideways dis- inheritance is a major concern for couples who wish to pass their assets on to their children on second death.
An example of a potential problem would be if the surviving spouse re-marries and then subsequently divorces meaning the assets owned by the first spouse (who thought they would go to the children) could be lost in divorce proceedings.
Many people arrange the Asset Protection Trusts (APTs) to offer protection from such senarios.
Some of these Trusts are set up when you are still alive. These are commonly known as ‘Lifetime Trusts’ while others, known as ‘Will Trusts’, come into play once you have died.
The Lifetime Property Protection Trust’, allows you to shelter any assets you have, such as your home, in a Trust. Once the Trust is set up, it provides protection for any assets transferred into it and can help to make sure you leave as much as possible to your loved ones.
Unlike a ‘Lifetime Trust’ which is set up when you are alive, a Will Trust is set up once you have died.
In simple terms, rather than transferring everything in your share of the estate to your spouse or partner when you die, it is put into a Trust. By doing so, you are, in essence, putting a protective arm around your wealth.