Have you protected your estate for your blood line?
In a will you can name guardians for your children
Have you made a Lasting Power of Attorney?
Partners living together really do need a will
Why you should make a flexible life interest trust
This trust is very, very useful if either spouse has large assets which they wish to preserve against many of life’s eventualities. The main concern is the survivor remarrying where a new spouse would have access to the funds. If there was a premature death of the survivor the new spouse could inherit. It also prevents against spendthrifts and ensures that assets are preserved and can pass down the line.
A trust is created on the death of the first spouse and the capital assets (both property and cash) of the deceased are held in a trust which pays any income generated to the surviving spouse for their lifetime. This is treated for inheritance purposes as an outright gift to the survivor so does not create a tax charge preserving the first spouse’s IHT threshold for use on the death of the surviving spouse. On the death of the surviving spouse the trust capital is passed to nominated beneficiaries such as children. Because the capital in the trust fund is not owned by the surviving spouse, it cannot be given away by them to, say, a new spouse or partner. It also cannot be assessed if the surviving spouse needs to end their days in care. The assets do not belong to them.
The trustees can lend capital to the surviving spouse and it is repaid from their estate when they die. This means it cannot be used in any assessment nor can be given away. The Flexible Trust is so called because it can be converted into any other form of trust, gifts can be made to other beneficiaries which would, however, still be considered as a PET.
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