Why Make A Flexible Family Trust Will?
Many people assume quite wrongly that all their property and money will automatically pass to their loved ones when they die but the truth is your money could be at risk and end up somewhere that you hadn’t intended.
Most Wills are written with your partner and then your children as the intended beneficiaries but what happens if you die leaving all your money to your partner and they then remarry?
What happens if you need Long Term Care and the Local Authority want to possess your home to pay for Care Fees?
If you make a Flexible Family Trust Will before you die then you can protect your assets from these threats and many more.
Common circumstances in which family assets can be lost unnecessarily are as follows:
Being lost to pay care fees
What if one of you die and the survivor has to go into care?
In these circumstances, all the family assets including the family home can be used by the Council to pay the care fees.
Being lost on the survivor’s remarriage
What if one of you passes away and the survivor were to remarry?
This can cause problems for your children’s inheritance as the estate may become diluted with that of the future spouse and their children, or even become the property of the children of the new spouse entirely.
Being lost on your children’s divorce
What if your children divorce?
In these circumstances assets that have inherited from you directly may end up in their ex-spouse’s family. In fact many unhappy marriages can be brought to an end by one partner receiving a direct inheritance.
Being used to pay inheritance tax
What if your children inherit from you directly and they are already over the IHT threshold?
In these circumstances they may have to pay Inheritance Tax on your assets when they die even if these have already been taxed.
How to protect your family assets from these problems
If the first of you to die puts their assets into a trust, this will keep them safe from all these circumstances, as they will never become part of the survivor’s estate. The trust is known as the Flexible Family Trust.
By leaving the survivor a life interest in the use of the deceased share of the main residence, they remain secure in the family home.
Likewise a life interest in the income from the other assets in the deceased trust gives the survivor security of income.
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Ensure your will is legal
- Sign it in the presence of 2 witnesses who are both over 18.
- Have it signed by your 2 witnesses, in your presence.
- You cannot leave your witnesses (or their married partners) anything in your will.
If you make any changes to your will you must follow the same signing and witnessing process.
If your Will is not legally signed you may as well have not made one.
Ensure your Executors can find your Will
If your family or executors cannot find your Will after you have died, then you will likely die intestate. Find safe, secure storage for your Will and tell your family and Executors where it is stored.
If your Will cannot be found, you may as well have not made one.