Trusts

Unlike a family asset protection trust a will trust is only created once you pass away. You set up the conditions of the trust in your will and it activates upon your death.

The Property Protection Trust is an intricate trust clause within your Will, which ensures that after you die your share of the house is held in trust to be used by a surviving spouse or partner, for the rest of their lifetime. They never actually own your share of the property and neither can they be forced out, but you do have the peace of mind knowing that whomever you leave your property to, they will actually receive it whatever happens to your spouse or partner. It enables you to ensure that your children are not disinherited after your death, for example if your spouse remarries or the property is needed to pay for 3rd party claims. If you own your house as joint tenants, as most people do, it would be necessary to complete a severance of tenancy.

The Lifetime Interest Trust is a relatively complex clause within your Will, which allows you to leave property or assets held in trust for your beneficiaries but with another person having the use of property or income from money, often a surviving spouse or partner, for the rest of their lifetime. This trust could be used to protect assets for a wayward child or if you wanted to make sure your children from your first marriage, received your assets but without depriving your new spouse of the use or income from them.

Why you may need a Discretionary trust for a certain beneficiary;

• Protecting a beneficiary's money if they are financially unstable
• If the beneficiary was at risk of losing inheritance through divorce or bankruptcy
• The beneficiary was in receipt of benefits.

The Discretionary Trust is one of the more complex of trust clauses used within Wills today, the content of which can be varied to suit a number of situations. Sometimes a Discretionary Trust is used to protect assets for a disabled beneficiary or to protect property from 3rd party claims or remarriage.