What type of Family & Property Trusts do we offer?
Property Protection Trust:
This Trust may be suitable for people who wish to protect some of the value of their home against the following:
- Long-term care funding.
- A surviving spouse or partner entering a new relationship or redirecting assets through their Will.
- Children from a previous relationship missing out on their inheritance.
Typically, a couple will own their home as Joint Tenants, meaning the property will pass entirely to the survivor. Whilst this may seem like a comforting position, it does carry some risks. For example, if the survivor requires long-term care, the whole house may be taken into consideration. Additionally, should the surviving spouse enter a new relationship, their new partner may be able to make a claim against the full value of the property at the time of death or divorce, depriving your beneficiaries of some of their inheritance.
Another danger is that the surviving spouse will own the entire property, and they may change their Will at a later date. In doing so, they may disinherit any of your children from an earlier relationship.
There is an alternative way that a couple may own a property, known as Tenants in Common, whereby each person owns half of the property. This enables you to leave your share of the property within a Property Protection Trust, without adversely affecting the surviving partner.
Right to Occupy Trust or Right of Occupation Trust:
This Trust may be suitable for people that solely own their property and want their partner, adult children or anyone else living in their home to continue to do so after they pass.
A Right to Occupy Trust allows you to specify in your Will that upon your passing, a person of your choice will have the right to reside in your property for a period of time of your choosing. For example:
- The rest of their life.
- Until they remarry or cohabit.
- Until you wish for your beneficiaries to inherit the property.
You can even permit them to move property. However, they will never own the house as it is managed by your Trustees and will ultimately be inherited by your chosen beneficiaries.
Vulnerable Person Trust or Disability Trust:
This Trust may be suitable for people that have beneficiaries where receiving an inheritance could disadvantage them or lead them to harm.
If one of your beneficiaries receives means-tested benefits, they risk losing their entitlement if their assets exceed a certain threshold. They would therefore have to use their inheritance to support themselves until they fall below the threshold and then reapply.
Furthermore, if one of your beneficiaries has an addiction, they may use their inheritance to fund their habit, which could be detrimental to their health.
These individuals can still benefit from your Will, but instead of receiving their assets directly, they go into a Vulnerable Person Trust or Disability Trust. Your chosen Trustees can then manage their inheritance, ensuring the funds are used appropriately.
This type of Trust may be suitable for people that don’t know who they want to inherit or want to give their loved ones the power to decide. You give your Trustees the ability to determine who, among a group of your chosen beneficiaries, will inherit, as well as the amount and timing of the distribution.
Discretionary Trusts are beneficial as they allow your Trustees to respond to changing or unforeseen circumstances, such as changes in your beneficiaries’ financial situations.
However, you may still want to guide your Trustees, which is typically achieved by including an Article of Wishes alongside your Will Trust. An Article of Wishes lets you outline conditions under which your beneficiaries should receive their assets, but your Trustees are under no legal obligation to follow the guidelines in your Article of Wishes.