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Lifetime Protection Trusts

Think of a lifetime trust as your own mini-fortress or imaginary safe!

Trusts are very useful although some have received some bad press over recent years; rightly so given that a poorly established trust can lead to unpleasant outcomes for beneficiaries including legal fees and tax.

Conversely, a well thought out and well executed trust can provide peace of mind for families throughout generations and for years to come. Think of a trust rather like an imaginary safe in which assets are settled into; hence the term ‘settlor’.

There are two points of establishment for trusts: during the lifetime of a settlor or a trust which is drafted into a Will (which for married people or cohabitees normally comes into effect when the first person dies).

We are highlighting the usefulness of Lifetime Trusts.

Trusts ensure that your assets pass to those people of your preference. It ensures that your family will inherit what you want them to inherit, even if your surviving spouse or partner remarries and changes their own Will in favour of someone else.

This becomes possible through a trust, as the assets belonging to the deceased are held away and from future marriages or cohabitation. Access is given to the trust assets (capital and income) during the remainder of the surviving spouses/partners lifetime.


How Your Legacy Solutions
Can Help

Lifetime Trusts including The Family Trusts and Asset Allocation Trust

Placing assets into a trust whilst you are living (a Lifetime Trust) offers many advantages over setting up trusts through your Will. Lifetime trusts are primarily designed to protect against six main risks that you, your estate or the beneficiaries could face.


When you die you and your family have the option of whether to deal with probate or employ the services of professional estate administrators which can levy a legal cost on your estate. The advantage of Family Trusts and The Asset Allocation Trust is that, rather like a pension, it can avoid the need for your assets to go through this expensive process, as any assets within the trust can be paid directly to your beneficiaries without a ‘Grant of Probate’ being required.

However, you should be aware that any assets remaining outside of the trust could still be the subject of the probate process.

Probate Costs

Future Claims on Your Assets

Certain people have the right to claim on your estate even if you wish to exclude them and there are times when more vulnerable people can get into the wrong company.


The Family Protection Trust limits this potential problem as it will only pay out to the beneficiaries named within the trust and any assets held outside the trust are passed on according to the terms of your Wills, giving you complete control whilst you are living and after your death.

Trusts ensures that your assets pass to those people of your preference. It ensures that children, for example, will inherit what you want them to inherit, even if your current or future surviving spouse or partner remarries and changes their own Will in favour of someone else.


This is possible as the assets belonging to you are held away from future marriages or cohabitation.

Sideways Disinheritance


There may become a time when you are frail. Some people have attempted to manage later life frailty by transferring assets to children during their lifetime which can and often is disastrous due to unnecessary tax and divorce of the person who the assets are transferred to.


Or they are involved in a problematic marriage or partnership, or facing financial difficulties. The Asset Allocation Trust on the other hand safeguards the funds in this situation whilst still supporting them financially.

The Asset Allocation Trust automatically provides a solution for those assets held within the Trust during your lifetime, even if you are incapacitated. We recommend that you also set up a Lasting Power of Attorney to enable someone to manage any assets held outside of the Trust.


This means that if you become unable to manage your financial affairs, you know that there is someone you have chosen to do this.


Care Fee Management

A Family Protection Trust has the ability to help manage your assets if you require long term care. It gives you the certainty of knowing that your estate is being protected and managed by your family, supported by people who understand the legislation surrounding Care Costs.


Although long term care is by no means a certainty for everyone, the consequences for the family of failing to plan ahead can be acute.

Planning your Wills and making provision for your loved ones doesn't need to be difficult
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