What is a Family Protection Trust?
A Family Protection Trust is a valuable tool, not only for families but also for individuals to protect their assets from future events such as divorce, bankruptcy, or death. A trust can hold a variety of assets from cash to real estate and other investments.
Unlike a Will which can be contested, a Family Protection Trust provides you with an extra layer of security to ensure that your wishes can be met after you’re gone, providing you with complete protection for the assets involved.
Here are five advantages to getting a Family Protection Trust
1. You can control what happens to your assets.
By having a Family Protection Trust in place, you can control what happens to your assets following your passing, to ensure that your assets are kept within your family. When you have a trust in place, you reduce any corner that your children may misuse the money or other loss to your estate.
2. Avoid probate fees and inheritance disputes.
The cost of the probate process and administering of your estate comes out of the estate itself. However, by having a Family Protection Trust you can avoid inheritance disputes, and challenges whilst being able to avoid probate fees.
3. Protecting your assets.
In circumstances where there is considerable risk of your assets being reduced such as divorce and bankruptcy, having a Family Protection Trust protects you, your loved ones, and their inheritance from the possible effects of your assets being reduced.
4. Access for your children.
Inheritance Tax liabilities following the passing of a parent can unfortunately be an issue for the child or children of the deceased. However, by having your assets in the trust is advantageous for your child. This provides them with access to the funds, but they do not form part of their estate.
5. Immediate Access can be Avoided.
A Family Protection Trust can last up to 125 years! This is useful as your children do not have to get access to the funds immediately.
Comments