Wednesday, 8 February 2017

Trust in the Family

Around a third of parents are concerned about leaving an inheritance to their children, as they are worried that divorce may mean that money leaves the family.   It is perhaps an understandable concern, with around 42% of marriages failing according to the Office for National Statistics.

There are however, steps you can take to ensure your money ends up in the right hands irrespective of how successful your child might be at finding a long-lasting partner.

Putting money into a discretionary trust is a useful way to protect money from divorce.  With a discretionary trust, it is up to the trustees to determine how and when any potential beneficiaries may be able to access cash.  Your trustees can consider the needs and personal circumstances of all the potential beneficiaries and protect assets for future generations.

What's more, gifting money into a trust during your lifetime will reduce the value of your estate for inheritance tax purposes.  A trust is therefore a useful tool for inheritance tax planning and protecting assets for your family. Alternatively you can include such a trust in your Will.

For specialist advice about such trusts call your local solicitor, Jennifer Slater  at Hansford Bell Law who is based in Tavistock on 01822 619805 to fix up an appointment either in the office or at home.

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