There is a lot of incorrect and misleading information on the internet regarding Trusts. There are many different types of Trust, for example our life interest Home Protection Trust is not the same thing as a Protective Property Trust or a totally Discretionary Trust.
And, as this is a very specialist subject, it is also very easy to misinterpret some of the information, giving you worries if you are considering ordering, or in fact have already ordered a Trust.
Please ask us if you have any concerns; we are the experts. In the rare event that we do know the answer we have other top professionals we can consult with.
We would never give you false information to obtain an order. We have over 10 years’ standing in Trust work, so please ignore the incorrect information given by people who are either prejudiced or simply ignorant of the true facts, including some legal professionals.
Protection starts immediately after you put anything into the Trust, be it your home, cash assets, shares, etc.
Yes they can. The can sell it and split the money in accordance with your Trust instruction, or they can rent it out. And they can do these things immediately.
Yes, you have absolute control, just the same as now.
Yes. Everything you can do now, you can still do. Nothing changes. You can move home and the new home automatically goes into Trust. You can downsize and spend the money left over. you can even sell your home and bet the money on a horse (not that you are likely to want to!)
Trust law is well established over centuries and even if loopholes are plugged in the future, the government has never made this retrospect. There would be such an outcry if they did this, and remember that many M.P.s themselves have Trusts.
You put your home up for sale in the normal way and your conveyancer will automatically convey your new home into Trust. Nothing could be simpler.
You simply go to your bank and ask them to open a Trust account for you. You then deposit money into the account in the normal way. You may wish to open a savings account and a current account. You can then get interest, and transfer money between accounts and write cheques for whatever you want, such as your next cruise, your new car and just everyday household bills.
The short answer is no. There is nothing really to do once the Trust is set up. It could be, however, that you want to add or remove a beneficiary or trustee, in which case there is a small amount of paperwork we will do for you at a very nominal cost. Unlike a Will which would need to be re-written, the Trust does not need to be re-written; it is just a supplementary piece of paperwork that has to be raised.
Very unlikely situation, but if it were to happen, the Society of Will Writers and Estate Planning Practitioners would appoint another local firm to complete the work and pay for it. As full Society members we have paid into a disaster fund to cover this eventuality. And, for after sales service, the Society would appoint another local member to look after our client’s future needs.
We do not charge for advice, we only charge if we do work for you. Whenever a situation occurs such as someone has died, we recommend that you contact us so that we can guide you down the path forward.
YES it does give protection to the assets in trust as they will not be counted in a divorce settlement.
Firstly if a couple (call them Mr & Mrs Smith) put their jointly owned home into a trust, then one dies and then the other meets someone new (call the new partner Mrs Jones) and possibly re-marries, the trust prevents what we call sideways disinheritance, as the property will always be protected in the trust for the beneficiaries of Mr & Mrs Smith AND most importantly those beneficiaries cannot be removed from the trust regardless of what influence Mrs Jones brings to bear.
If Mr & Mrs Smith had not put their property in trust and just left it to each other in their wills, then one died and the other one met someone new, that remaining partner (say Mr Smith ) may have been asked to make a new will by the new partner (Mrs Jones) leaving everything to each other and then Mr Smith dies and Mrs Jones gets everything and leaves everything to her children in her will and Mr & Mrs Smiths children inherit nothing, and this happens all too often.
The second point is that it prevents a beneficiaries spouse or partner from getting their hands on Mr & Mrs Smiths house after they have died, as it will still be protected in the trust for that named beneficiary(s), and we recommend that beneficiary(s) leaves it in the trust, possibly renting it out, or sell it and puts the money in trust, keeping it protected, unless they want to sell it and spend the money, which they can do.
Over simplifying a very complicated subject as follows:
We create a Home Protection Trust for the client(s). It can be a trust for a single person or for a couple (known as a dual settlor Trust) It is a lengthy technical document and a good trust will be about 20 pages in length giving full protection for assets in trust and full flexibility to the trustees to do whatever they wish with the property in trust in the future. The Trustees can be 2 ,3,or 4 people and can include the settlors and their children or just the settlors (the people putting property in trust). The settlors have a life interest. Then we convey the settlors property into trust at the land registry with the trustees names being shown on the trust. The settlors can for instance move home and the new home automatically goes into the trust or they could even sell the home and bet the whole amount on a horse, not that anyone is likely to do that but it just shows the flexibility that a good trust allows.
In addition to putting property into trust, savings can be put into a trust bank account and shares can be transferred into it, provided it is a well worded trust. Major advantages of a trust include, protection from all unforeseen eventualities, even care fees provided the property is not put into trust for this reason. Removes the need for probate on the property, which can significantly save probate costs. Prevents claims on the estate after death under the 1975 inheritance act from classes of persons entitled to an inheritance. Protects property in trust in the event of divorce of beneficiaries. And in the event that if one partner dies and re marries the property is still protected for the beneficiaries.