A Short Guide to Trusts and Asset Protection
‘They are only for the rich and famous aren’t they?’
No, they are not. The majority of adults in Great Britain will have experience of trusts even if they are not aware of it. When houses are bought together with spouses, civil partners or friends, a trust is created. Joint bank accounts create a trust, and when parents or grandparents open a bank account for a child or grandchild, again a trust is created. So, not just for the rich and famous then – it’s just that the rich and famous may have more experience of how to make use of trusts and thereby protect their assets. As the saying goes ‘Money goes to money … ‘
So how can we mere mortals protect our assets and from what? Think about common family circumstances :
- Parents with minor children may wish to ensure that their children do not inherit until they are 18, 21 or older. Grandparents may wish to do the same
- Second marriage spouses may want to protect inheritances or gifts to children from first marriages or other relationships
- Cohabitation Agreements, Pre and Post Nuptial agreements are now more commonplace and the benefits of their use cannot be overstated
- Some assets may need to be managed in the long term for the benefit of a child or relative with special needs
- You may wish to protect an elderly relative’s assets from being assessed by the local authority for nursing home fees
- You may have a personal injury award
In these challenging financial times any help we can get protecting our assets and managing our ‘wealth’ (whatever its size) should be given due consideration. At Couchman Hanson Solicitors we understand that there is no ‘one size fits all’ family relationship and we can advise clients on the options available to them and help guide them through what can be complex decisions.
Contact us today on 01428 722189.