What is an Asset Protection Trust?
The Asset Protection Trust is a specialist trust which places your assets into Trust whilst you retain enjoyment of them. Once the Trust has been created you can use it to ‘ring-fence’ your assets.
Trusts have been around for a long time and are well established ways of protecting your assets and your wishes for the future. Trusts enjoy special status within Law and have been used by the wealthy since the days of the Crusades to protect their wealth, but you don’t have to be wealthy to have a Trust now; most people that own their own homes would prefer to ‘keep it in the family’ and this is one way of potentially ensuring that happens.
In simple terms a Trust is a legal entity, where assets are held by one party (the Trust) for the benefit of another (you and your family). By transferring your assets to a Trust, you are splitting ownership and control. Trusts have traditionally been used by shrewd individuals as an effective estate planning tool. The fundamental rule of asset protection is ‘what you don’t own, can’t be taken from you.’
- Protection from probate costs and delays
- Protection for second marriages
- Protection for your children
- Protection from future challenges on your estate
- Protection from IHT for next generation
- Protection for disabled beneficiaries
- Protection from bankruptcy
- Protection in the event of mental incapacity