The Family Home – Asset Protection and Long Term Care
You will have seen adverts for ‘Will Trusts’, ‘Asset Protection Trusts’ & ‘Family Protection Trusts’, but do you really understand what it means?
The main asset the most of us will ever have will be our home, and you will want to ensure that this is passed on to your beneficiaries. You may wish to do this by your Will on death or by putting it in Trust during your lifetime.
Life Interest Will Trust
Rights that can be given or restricted
- Occupation of the home
- Move home
- Income from the home
- Interest from proceeds of sale
- Capital at discretion of your Executors
- Survivor does not own the capital and as such it can’t be touched by creditors or local authority
- Survivor has income/interest from the home if required
- Beneficiaries are secure and know that their interest in the house is protected – this can be important where there is a second marriage or disputes and avoids argument
- The trust can be undone by agreement of the Executors and Beneficiaries depending on how you set it up
- Wills can be altered during life, unless they are stated to be mutually binding
- There will be a cost in setting the trust up on first death and shutting it down later on
- Potential claims from disgruntled ‘beneficiaries’ who you have cut out
- Until death the home is still yours, it may be called to account by creditors, local authority/care fees, insolvency and if your relationship breaks down
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.