One of the services we offer at DRA Legal is our asset protection services. Asset protection is the strategy of guarding your wealth, it is part of financial planning which is intended to protect your assets from creditor claims without lying under oath or tax evasion.
At DRA legal we know that there are 5 key problems which may be addressed through the proper use of Trusts that are set up in someone’s lifetime. The first problem is probate costs, this is where the estates of a Husband and Wife if administered by a traditional High Street solicitor. This may lead to total legal costs of £15,000 - £25,000 on a modest joint estate which includes a property, however, if the couple’s assets had been placed in a Trust then there would (providing assets kept outside the Trust are modest) be no longer requirement for a Grant to be obtained.
The second problem is sideways disinheritance where if one spouse has died and the survivor has remarried but has not gotten round to making a will, then on his/her death there is a danger that the children of the deceased would not be able to receive anything as of right. Instead this would result in the family of the new wife/husband taking it all, if a trust had been in place then the original beneficiaries would be provided for by the trustees.
The third problem is the need to not rely on children, this is where many couples believe that their own children will ensure they are always well cared for and in believing so they transfer the family home to the children. However, the children themselves may experience issues such as divorce or bankruptcy in their lifetime which could result them placing the entirety of their assets under threat.
The fourth problem of Asset Protection is incapacity where if one or both spouse loose capacity it will be too late to plan for Asset protection and there may be delays in putting a Lasting Power of Attorney in place. By having assets held in trusts the Trustees would immediately be able to act in respect of the assets there then would be no need to incur the expenses of the Lasting Power of Attorney.
The final problem of Asset protection is Residential/ Nursing Home Care Fees, one in three women and one in four men will go into care. In the years 2018-2019 only the last £14,250 of the resident’s assets will be protected from the need to pay the local authority for care. Everything that is above £23,250 is vulnerable.
If you have any more enquiries about Asset Protection or anything in general then do not be hesitant to phone us at 01924 601043 or email at email@example.com, our amazing team will be more than happy to answer any query you have.