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The Family Home – Asset Protection and Long Term Care
11 August, 2017 2 minutes reading time
SecondlyYou will have seen adverts for ‘Will Trusts’, ‘Asset Protection Trusts’ & ‘Family Protection Trusts’. However, do you understand what it means?
For many, their home is their most valuable asset. Naturally, you want to ensure it passes to your beneficiaries. You can achieve this through your Will upon your death or by placing the property in a trust during your lifetime.
Life Interest Will Trust
Given or Restricted Rights
- Occupation of the home
- Move home
- Income from the home
- Interest from proceeds of sale
- Capital at the discretion of your Executors
Benefits
- Creditors or local authorities cannot touch the capital because the survivor doesn’t own it.
- The survivor can receive income/interest from the home if needed
- Beneficiaries are secure knowing their interest in the house is protected—important in second marriages or disputes to avoid arguments
- The trust can be dissolved by agreement of the Executors and Beneficiaries, depending on its setup
Disadvantages
- Firstly, Wills can be altered during life unless they are mutually binding
- Secondly, setting up the trust at the first death and dissolving it later will incur costs
- Thirdly, potential claims from disgruntled beneficiaries you’ve excluded
- Finally, until your death, the home is still yours and could be claimed by creditors, local authorities/for care fees, in insolvency, or if your relationship ends
Our Advice
For more information on making a Will along with Trusts, Probate and Power of Attorney, or to arrange an appointment, contact our legal team.
Please note that all views, comments or opinions expressed are for information only and do not constitute and should not be interpreted as being comprehensive or as giving legal advice. No one should seek to rely or act upon, or refrain from acting upon, the views, comments or opinions expressed herein without first obtaining specialist, professional or independent advice. While every effort has been made to ensure accuracy, Curtis Parkinson cannot be held liable for any errors, omissions or inaccuracies.