Ultimate Family Protection

Ultimate Family and Property Protection Trust Package (FPPT)

In addition to all the benefits included with the Property Protection Trust this ultimate package adds protection for your family’s inheritance with the use of Discretionary Trusts and provides flexibility and peace of mind.

The following lists some of the more common reasons why our clients ask us to set them up with the full Family and Property Protection Package:

  • “I want to protect my daughter’s inheritance if she gets divorced in the future”.
  • “I would like to help my grandchildren go to university or buy their first car”.
  • “My son has a drug problem. I need peace of mind that his inheritance is used wisely for him, and not wasted”.
  • “I wish to protect my children’s inheritance from future care fees”.
  • “I want flexibility so my family receive what they need”.
  • “My daughter has a mental health disability, so I want people I can rely on to manage her money”.

Why use a Family and Property Protection Trust Will?

The benefits of the PPT have already been well documented but there are many reasons why including a Discretionary Trust in your Will can help your loved ones. (See above)

This type of trust is effective because the assets are held and managed by the Trustees to distribute to the beneficiaries at their own discretion.

Assets are protected because the beneficiaries do not own the trust fund assets. Trustees will only make distributions if they think it is wise. This means your legacy is better protected from third parties or being squandered by beneficiaries.

You can appoint family and friends (including the beneficiaries) as your Trustees but you must be confident that they will act fairly. Between two and four Trustees should be appointed. Alternatively, you can appoint a professional Trustee for neutrality and expertise.

The package includes a Letter of Wishes. This document sits alongside your Will and helps your Trustees to understand the aims you had in mind for how the Trust Fund should be used.

When is it set up?

The Life Interest trust for the Property Protection is set up on first death. The Discretionary Trust is set up on second death as the trust funds are usually made up of the residue. (Cash, savings and or investments)

How is a Discretionary Trust Taxed?

It is important to remember that the use of the FPPT is to be able to manage and protect your children’s inheritance.

In and of itself it is not IHT beneficial. For this reason, it is advisable to limit the maximum amount of funds in the trust to each individual’s NRB allowance (currently £325k) and not to appoint any property to the trust as this would negate the Residential Nil Rate Band allowance.

Where funds exceed the available Nil-Rate Band, anniversary and exit charges will apply.

If Inheritance Tax is your main concern you may want to consider a Lifetime Trust which can take assets outside of your estate but this would then be viewed as a Potentially Exempt Transfer (PET) and as such will be governed by the seven-year rule.

A Complete FPPT Trust Will Package includes:

  • Both Wills
  • Both Protective Property Will Trusts and Life Interests
  • Both Discretionary Will Trusts
  • Two Property & Financial Lasting Power of Attorneys (unregistered)
  • Two Health & Welfare lasting Power of Attorneys (unregistered)
  • Declaration of Severance of Tenancy
  • All Land Registry searches and SEV application to enter a Restriction
  • An extra Engrossed signed and witnessed copy of each Will

We provide FREE home visits and advice for all your Will and Estate Planning needs.

Get Consultation

Call Us Now: 01202 065953, 01264 252900, 01983 623900, 01908 421600 | info@dorsetandwight.co.uk

Head Office: Dorset & Wight, Kingsland House, 514 Wimborne Road East, Ferndown, Dorset, BH22 9NG.

Isle of Wight: Dorset & Wight, Innovation Centre, St Cross Business Park, Newport. Isle of Wight. PO30 5WB.

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