Protective Trusts are critically important. In most cases, it is 'best advice' to leave your 'earned and already taxed assets', to your spouse, children, or whoever you wish, into a trust. It can mean that these assets are not counted in the 'Taxable Estate' for 125 years. This will stop your estate being taxed again by 40% for each generation.
Trusts can protect your assets against:
- Local authority, care fees and care home claims
- Non-bloodline partner claims
- Creditors and Predators (e.g. credit cards)
- Marriage after death (MAD) and 'Sideways Disinheritance'
- Vulnerable children or adults
- Any 'will claims' or 'challenges'
- Your children paying 40% tax on the inheritance you left them.
Beneficiaries of a Discretionary Trust have no tax to pay on assets in the trust – usually for the bloodline. It is ideal for those with more than one property, children under 18 and vulnerable persons.