Do you have assets (money, investments, land or buildings) or trusts that you want to ensure are appropriately managed and protected?
Asset protection can be intimidating and confusing to navigate- not to mention a legal minefield. First, here's an overview:
Asset protection can help protect your home from tax liabilities and any future claims on it. It can be used to:
- Make your children the legal owners of your home
- Create a trust for your home and other assets
- Transfer 50% ownership of your home to your children when your spouse dies
Reasons you may want to protect your assets include:
- To reduce your tax liabilities
- Difficulties in your relationship, whether married or cohabiting
Some of the main pitfalls include:
- If your children sell the property, they may be subject to capital gains tax
- An inheritance tax claim may be made immediately after the property transfer
A trust can be an effective method of asset protection. A trust involves:
- Settlors, who put the assets in the trust
- Trustees, who manage the trust
- Beneficiaries, who benefit from the trust
A trust might be used:
- When the beneficiaries are too young to look after the assets
- To protect your assets from tax and other liabilities
It's important to have a good understanding of how asset protection and trusts work, and to seek professional legal advice specific to your situation, before you make any decisions.
This will ensure you're aware of all the legal implications and responsibilities associated with them, and help you understand the best way to achieve your goals.
We provide in-depth advice about setting up and managing trusts, including liaison with relevant financial experts, such as independent financial advisors (IFA).