We have an experienced Trust and Tax Department offering detailed advice on the establishment and administration of trusts, for purposes of protection during lifetime or for Inheritance Tax (IHT) Planning.
Most assets can be placed into trust and individuals can each settle £325,000 under present legislation without paying lifetime IHT.
The status of a discretionary trust conveys considerable protection with assets not regarded as belonging to any beneficiary. Such assets are not usually taken into account on bankruptcy, divorce or for future personal care purposes, if the trust is established in time and in the correct manner.
A care home of reasonable standard can cost over £500 per week. If application is therefore made for local authority assistance, this will only be provided once the value of assets is below £23,000.
The family home and other investments are therefore at risk of significant depletion if there is no trust. Early planning can avoid problems later.
For advice on asset protection trusts, please call our 52 North Street office in Chichester or to find out more about our team click through to the staff profile pages featured on the right hand side.