ASSET PROTECTION
In order to ensure that your home passes on to your family and loved ones, it is important to protect your assets with a legally binding solution.
WHAT IS ASSET PROTECTION?
Asset protection is an important component of financial planning that ensures an individual’s property is protected from any creditor claims. There are several legal devices that exist to ensure that both an individual’s personal and professional assets remain in possession of the asset-holder or the asset-holder’s beneficiaries.
The process of putting in place asset protection involves evaluating your current situation and identifying your future and financial goals. We will then design a strategy to accomplish these objectives and prepare the required legal documents to ensure it is carried out successfully.
Our bespoke service ensures that your property is safeguarded and transferred in line with you and your family’s wishes. Most importantly, it is a preventative measure to ensure that your assets are not misdirected, misused or requisitioned.
WHAT CAN I PROTECT?
Generally, when we talk about assets we are talking of valuable property and possessions that can be both tangible and intangible. Some common examples include homes, real estate, common stock and money. There are some assets that exist outside of these legal requirements as they are exempt from creditors and requisition, these are classed as personal possessions and include personal items such as clothes and jewellery.
It is important to have a clear plan in terms of identifying your beneficiaries and your financial goals. The form of asset protection that we will recommend will be determined by who you would like to look after these assets and how long you require the protection to last.
With asset protection, as with all forms of financial planning, it is vital that the arrangements entered are right for you. At Henceforth we will advise on the options that are open to you and help guide you as to which will be the right decision for your objectives.
SOME INTERESTING FACTS...
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Currently, anyone with assets above £23,250 (in England) or £50,000 (Wales) may not receive state help with care costs, meaning that without the right financial planning in place, families could be forced to sell their home to fund further care.
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Estate value can quickly be eroded due to the cost of care homes. In cases such as these, the Local Authorities will means-test the entire property and sell it to cover the cost of care.
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In another example, if a widowed partner remarries, the property can then become defaulted to another family, and cause distress for the intended heirs.
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Our trusts ensures that, no matter what the value of the Property increases to, there will never be a Periodic or Exit Charge payable.
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Our estate planning ensures that, no matter how much growth in value the Property has experienced, there will never be an “unexpected” IHT liability caused by the Trust.
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Our trusts are drafted to ensure that, if the clients Executors (Personal Representatives) need to benefit from the Residential Nil Rate Band, the property can fall through the client’s Will to Lineal Descendants.
