“Should I set up a Family Trust” is a question you may ask yourself for 2020, but what are the benefits of doing this? Carolyn Tilly, Managing Partner at Tilly Bailey & Irvine Solicitors, explains…
“I am often asked by clients whether setting up a Family Trust would be a good idea for them. The answer is often yes, as there are lots of advantages to setting up a Family Trust.”
Such as? Well, a Trust ensures security and protection for your assets and can make things as simple as possible for your family to deal with when you die.
In fact, the need for Probate is often avoided altogether, which may help keep the costs of dealing with your estate down if the proposed rise in probate fees comes into force – this has been widely published in the press as a new stealth tax.
“A Family Trust provides full protection for your beneficiaries, even if circumstances have changed”, adds Carolyn. “An example would be where your spouse or children (including adult children) have disabilities or lose capacity to deal with their own affairs. It also protects against your children being disinherited as a result of your spouse remarrying after your death.”
Your chosen Trustees can deal with the property in the Trust in the same way as Attorneys would under a Power of Attorney.
Since it would be your Trustees who control the capital of the Trust Fund, including your house, these assets should not, in normal circumstances, be taken into account in the assessment of your means for contribution to the cost of any residential care fees or other means tested benefits.
However, your solicitor will need to give you individual advice as to how the regulations about care fees would affect you.
“If you are considering setting up a Family Trust, it is important to take advice from solicitors specialising in this area of law. Tilly Bailey & Irvine has a team of legal experts and offer free initial advice regarding Property Trusts and Wills, all to help you decide what is best for you”.
TBI has more solicitors than any other firm in the region, with vast experience and a history dating back to 1842.