What is a Family Protection Trust.
You Googled ‘Family protection Trust’ and and it gave lots of websites about Wills, Inheritance and protecting wealth from the unknown during your lifetime.
The bulk of your family wealth is tied up in your home and investments. The Family Protection Trust is designed to ringfence all that into a trust and insulate it from the effects of unexpected liabilities. The majority of websites promote them for protection from Inheritance Tax and Long Term care fees, both of which, can disinherit your intended beneficiaries.
These websites don't tell you, the Trust Instrument, and the Lasting Power of Attorney documents are all factory made boilerplates. Produced in a back room using computer generated materials. The bulk of the cost is the commission paid out to the home visit consultant, who has in all probably travelled hundreds of miles just to come and see you. That is why no website tell you the cost is upwards of £8000 until they are sitting in your living room and given you all the speal explaining the benefits of the product.
This is a website helping you protect yourself from the effects of bailiffs. However, many clients ask me about the consequences of bailiffs being unable to recover money. The next stages a creditor can take is a bankruptcy petition, or charging order on your home.
A Family Protection Trust protects your wealth from both.
How does a Family Protection Trust work?
It transfers and holds your property and assets into a trust, which is then managed by your trustees.
You no longer own it. Your trust holds it in trust for you.
Your trustees are now in charge if your assets, and neither they, or the trust is liable for your debts.
You can choose your trustees. They can be family and close friends. You just need two more more of them, but above all, they must be trustworthy. So choose them wisely.
You then set up and register a Lasting Power of Attorney, giving directions to your trustees, and that gives you the right of use of your family wealth, such as buying a new home, car or setting up a business. In fact anything, as if you still own it.
It means a statutory liability, or a Court Order made against you becomes ineffective because your home and assets are no longer available. Remember, you no longer own your assets. You only have the RIGHT OF USE of them.
The Family Protection Trust also protects you from sideways disinheritance, such as ‘predatory spouse’, where your child stands to inherit and is vulnerable to divorce or separation taking away your wealth away from your family line or intended beneficiaries.
It ensures your wealth benefits who you want it to benefit, and not your beneficiary's creditors.
There is no such thing as an ‘insurance policy’ that can protect your wealth in this way.
It’s all 100% legal. The trust follows is the Trustee Act 2000 and the Power of Attorney follows the Mental Capacity Act 2005.
Setting up the trust can only be done by a solicitor. Section 22 of the Soliictors Act 1974.
How much will it cost?
You need to make a Will. £199 for 2 people
You need to make two Lasting Power of Attorneys £329
It must be registered with the Office of the Public Guardian, £220 *payable to OPG
Set up the trust. Only can be done by a solicitor, £550 *Payable to solicitor
Total cost: £1298.
Optional: If you want me to come and see you for a consultation, £350 fixed consultation fee.
Call me on 07768 518 382 for a chat.