Family Protection Trust

Protecting Your Assets From Enforcement

Your family wealth, encompassing property and investments, can be effectively safeguarded by a Family Protection Trust, shielding it from unforeseen liabilities.

Websites often advertise these trusts as a defence against Inheritance Tax and long-term care fees, both of which can strip your intended beneficiaries of their inheritance. They also offer protection from divorce, charging orders, bankruptcy, and bailiffs.

However, Family Protection Trusts can be costly and are frequently constructed from generic templates produced en masse.

The high cost is driven by marketing efforts reminiscent of double glazing sales in the 1970s, with commissions paid to home-visit representatives who promote the trust's benefits.

While this site focuses on protecting against bailiff action, it’s important to note that if bailiff efforts fail, creditors may pursue a charging order on your home or file for bankruptcy.

An established Family Protection Trust can safeguard your wealth and assets from such actions.

How does a Family Protection Trust operate?

It involves transferring your property and assets into a trust managed by trustees.

You no longer own these assets; instead, your trustees hold them in trust for you.

Your trustees manage your assets, ensuring that neither they nor the trust are liable for your debts.

Choosing your trustees is a critical decision. They must be trustworthy, whether they are family members or close friends. This choice requires careful consideration.

With a Lasting Power of Attorney, you maintain control over your family wealth, directing your trustees on its use—be it for purchasing a new home, investing in a business venture, or other purposes. This control and flexibility empower you, allowing you to feel in charge of your assets.

Any statutory liability or Court Order against you becomes ineffective as your home and assets are no longer in your possession; you only retain the right of use.

The Family Protection Trust also guards against sideways disinheritance, such as a 'predatory spouse'. This ensures that your wealth stays within your family line or reaches your intended beneficiaries, shielding it from the effects of your child's divorce or separation.

It guarantees that your wealth benefits those you intend, not your beneficiary’s creditors.

A Family Protection Trust offers a unique level of protection. Unlike insurance policies, it shields your wealth from unexpected liabilities and inheritance issues, ensuring a secure and confident future.

If bailiffs remove goods belonging to the trust, the trustees can claim the controlled goods.