Protecting Your Assets with a Trust

Ewart Matthias

Truly Indepenent Ltd

Financial Adviser, Investment & Wealth Manager, Pension Adviser, Financial Services

Every person that owns a house (whether on their own or with a spouse/partner) should strongly consider putting this property into an Asset Protection Trust - doing so protects the house with immediate effect (by virtue of it being a living trust) from bankruptcy, creditors, local authorities and partners of beneficiaries while giving clients a lifetime right to remain in the property but still taking it out of the probate process so saving beneficiaries significant costs and time when the client(s) pass/es on.

Every couple that jointly owns a house should have an Estate Preservation Trust in their Wills - such trusts protect the surviving partner after first death from having the home seized by creditors or local authorities and can protect any children of the original union from losing their entire inheritance if the surviving spouse should remarry after first death.

Every parent with a disabled/vulnerable dependant should include a Special Needs Trust in their Will - doing so will enable the dependant to retain state benefits/allowances whilst having access to extra monetary support from the trust.

Every unmarried couple should have an IOU Trust in their Wills if either has (or could have) IHT exposure - this is because there is no transferability of Nil Rate Band (NRB) allowance between unmarried partners and would leave the estate of the surviving partner exposed to having to pay (extra) IHT unnecessarily.

Every married couple with potential IHT exposure should also strongly consider IOU Trusts in their Wills - because the current transferability of NRB allowed between partners in a married union could be reversed in future and/or the Revenue may refuse the transfer of NRB allowance on second death on a variety of grounds.

Every adult with contingent assets ie those that will be created after death (eg pension lump sums payable on death, life insurance, death in service benefits) should strongly consider putting these into Pilot Trusts now - this lifetime trust ensures such assets do not use up the NRB allowance of either partner's estate and therefore save substantial IHT on both estates.

Every owner of business or agricultural assets should consider using Business Property Relief or Agricultural Property Relief Trusts - such trusts can increase the relief given to the estate of the beneficiary of the trust on their death by up to 100%.

Ewart Matthias

Truly Indepenent Ltd

Financial Adviser, Investment & Wealth Manager, Pension Adviser, Financial Services

I am a self employed business consultant and recruiter retained by Truly Independent limited. If anyone wishes to speak with an adviser I can arrange this with a Truly Independent adviser.