An Asset Protection Trust (APT) is one of the best ways to protect your estate and your assets when faced with long term care fees, but many people do not know about this legal tool, despite its increase in use. With long term care for the elderly an increasing strain on finances, lots of people are looking for ways in which they can safeguard their cash, assets and estate, enabling them to pay for long term care but still use their estate. Let’s look at why Universal’s APTs are often the answer.

When it comes to care fees, any assets held in trust are normally disregarded. So, as long as the trust has been properly set up and the assets ring fenced in this way, the trust offers great protection. We say ‘as long as the trust has been properly set up’, because APTs are a highly specialised area, and must be drawn up by experts in the field. In fact, many solicitors, IFAs and accountants refer people to Estate Legacy Services knowing that they use Universal and recognising our expertise and specialism in APTs.

How do Asset Protection Trusts work?

APTs work to protect your assets by holding assets in trust for your benefit during your lifetime. The benefit of this means that you have great flexibility and can move or release capital at any time without restriction. If you need to move into sheltered accommodation in your own old age, you can sell up and do so, using the cash generated by the sale as income.

Universal’s APT is fully reversible, meaning you can return your affairs to the way they currently stand should you ever have a change of heart.

The benefits of Asset Protection Trusts

Asset Protection Trusts are not only used by people who want to protect their assets from fees related to long term care. There are many other reasons people choose a Universal’s APT. The Trust creates a protective environment, saving loved ones significant amounts of money, and enabling your estate to pass to your family just as you wish. On the event of your death, an APT helps your family avoid the pressure of probate, saving them significant amounts of money in legal fees, time consuming delays and lots of heartache along the way. In fact, the assets held in trust are often paid out in a matter of days.

APTs also prevent claims on your estate claims, guard against sideways disinheritance and mean there will be no court of protection control. The trust can also protect your assets from being taken should you be subject to bankruptcy or unforeseen business debts. Should a personal relationship fail, an APT can provide you financial protection and peace of mind, protecting your estate for yourself and for any children who may be involved.

The benefits of APTs continue: they protect disabled or unemployed beneficiaries, allowing such beneficiaries to apply for assets you have placed within the trust without loss of benefits. The APT can also provide important protection from Inheritance Tax as assets held with the Trust do not form part of the taxable estate of your beneficiaries meaning that assets passing to your children will not be taxed on their death which could save your grandchildren thousands of pounds in inheritance tax.

Is is critical that you have your APT drawn up by a fully qualified and experienced professional, as it simply must be timed correctly and made completely watertight if it is to offer you full protection in the future. Talk to us about protecting your assets with an Asset Protection Trust. We are specialists and will happily give you the very latest guidance on this powerful legal protection tool.

Choosing a Will and Estate Planning Professional

When you make the decision to draw up a Will or discuss delicate legacy matters, you need to know you’re working with a true professional and someone you can trust. Your legal professional needs to be someone you can rely on not only to make your legal documents watertight but to treat each detail of your meetings and the procedure with respect and sensitivity.

How do you know when you’ve found the right estate planning professional?

Experience: for how many years has the Will and estate planning professional worked in the field? Does their career show consistency, specialism, longevity?

Awards: has the professional won any awards or distinctions within the industry? This shows they are a cut above the rest.

Recognition: is the professional recognised as an expert by their industry, their peers and their clients?

Recommendation: has the professional been recommended to you by someone whose opinion you value? Word of mouth recommendation is priceless.

Personality: finally, upon meeting the professional, do you feel you would be happy entrusting your most important and personal legal matters to them? Do you feel they are sensitive, professional and understanding? Do they take the time to really get to know you and your individual situation?

Jaci Godman Irvine is an experienced Will and estate planning professional, recognised by her clients, peers and the legal field itself as a true specialist. She chose to focus on Wills and legacy-related matters, so she can offer a truly expert service exactly when it matters most. She tailors each solution to the client, so you can rest assured that the process will be smooth and professional.

Universal Asset Protection Ltd appointed Jaci as their Estate Planning Specialist for the South East. In this capacity, she covers the regions of Kent, Sussex, Surrey and parts of London. In addition to this, Jaci is an affiliated member of the Society of Will Writers and has passed the Institute of Professional Will Writers exam and is studying for the prestigious STEP Trust &; Estate Practitioner Diploma (the Society of Trust and Estate Practitioners (STEP) is the professional body for the trust and estate profession worldwide). To cement her position as a Will and legacy professional you can trust, she is also a member of the Kent County Council Trading Standards “Buy with Confidence” scheme.

We hope this information will help you choose your own Will and estate planning professional, whether you fall under Jaci’s geographic area or not. Choosing an estate planning professional is a personal matter but there are certain things everyone should take into account. We hope you find the right person to assist you at this important time.

 If you own any property overseas, you need to pay particular attention to your Will in order to address the impact the property has on tax planning. Inheritance Tax will need to be properly tackled so you do not end up being hit with harsh taxation penalties. Here’s how to protect what you leave behind to those you love.

Don’t forget that the specific property, taxation and inheritance laws of the country your overseas property is in, can affect how you hand your property down to successors. Make it your business to find out everything you can about the succession laws of the country your property is in. Does any Will made here in England carry the same powers in light of overseas property?

Succession laws in France

Don’t assume that property in France will automatically pass to your spouse – even if you state this wish in your Will. Factors which can affect succession are the basis upon which you purchased the property, and whether or not you have any children. However, money in a French bank account can be left to whoever you choose.

Succession laws in Spain

English nationals owning property in Spain can leave the property to whoever they choose and state this in their Will. However, if you are regarded as a Spanish national, you would be subject to inheritance laws.

Consider these points if you own property abroad

Will your assets in the foreign country be dealt with under UK law or the law of the country in question? Or will some be dealt with here and some in the other jurisdiction?

Do the laws of the foreign country state that any portion of your Estate must be left to specific family members? 

Not all countries allow people to have joint ownership of property like we do here in the UK. If this is the case, you may not be able to determine to whom you leave your share of overseas property.

Family law differs greatly from country to country, particularly when it comes to divorce or dissolution of civil partnerships. Pre-nuptual agreements are not recognised by every jurisdiction. Make it your responsibility to get legal advice on both matters if applicable to your circumstances.

If you are unsure about how the laws of a foreign country could affect your Estate, or you want advice before purchasing property abroad, seek the help of a qualified professional. We would be happy to help at any stage.

If you’ve discovered that you’ve been appointed Executor or Trustee of someone’s Will, there are certain things you must be aware of. Executor and Trustee are important roles which carry specific legal duties, so our advice below will be invaluable if you find yourself in this position. Your duties as Executor or Trustee are:

•  Paying the funeral expenses of the deceased You will have responsibility for seeing that the Estate and assets are distributed in accordance with the deceased’s wishes (as per their Will)
• Is probate required? You need to find out and complete the paperwork
• You may need to deal with the Probate Registry (this might include an interview)
• Valuing the deceased’s Estate and completing Inheritance Tax forms
• You’ll need to collect the deceased’s assets, and then calculate (and pay) whatever tax is due on it
• Who are the Estate’s creditors? You’ll need to establish this, and pay them any outstanding debts
• Is Inheritance Tax due? You may need to work this out, taking into account legislation and exemptions
• If Grant of Probate is required, you will need to acquire it
• You’ll need to prepare the Estate accounts prior to them being signed by the beneficiaries
• You may need to liaise with Land Registry and Inland Revenue

Acting as Executor or Trustee of the deceased’s Will is an important and legally-binding role which must be taken seriously. If you are in any doubt as to the scope of the job, or which actions fall under your remit, please seek professional advice. We would be happy to help guide you through this often difficult and emotional time. We’ll do everything we can to make it as easy as possible for you.

When you choose a will writing service, there are a number of questions you should ask before settling on a service provider you can trust with this important task. Here’s our best advice for choosing a will-writer who has integrity as well as the necessary skills and qualifications.

Do they meet you face-to-face and ask for ID?

This is crucial and the only way the will writer can confirm the identity of the testator. It simply can’t be done over the internet, leaving internet-only will-writing services open to impersonation fraud.

Are the questions asked of you generic or tailored?

A lot of online will-writing services only ask very general questions and aren’t able to carry out an organic conversation with intuitive advice specific to your circumstances. Inheritance Tax, family matters, shares and overseas property are just a few of the possible areas which should be explored individually.

Have trusts and Inheritance Tax planning been explored?

If not, go elsewhere! This critical area of discussion could potentially save you from Estate taxation of a terrifying 40%.

It goes without saying that you should always be wary of giving out sensitive personal information, or financial details, over the internet. This is never truer than in the case of making your Will. Take professional advice and choose a will-writer who will meet you face-to-face for an unhurried initial consultation. Remember, your Will is a legally-binding document. Make sure you get it right, first time.

So you’ve just found out that you’ve been appointed Testamentary Guardian for a child (or maybe several) in someone’s Will. <h2> What does that mean? What are your responsibilities, and what’s next? </h2>

You now have parental responsibility for that child or children and, whilst the law doesn’t have a definitive set of rules, there are generally-accepted guidelines about the roles of Testamentary Guardians. Here’s what you need to know:

• You’ll need to provide a home for the child, live with them and have regular contact with them
• Should confidential information about the child need to be disclosed, you’ll have to handle the matter
• If the child needs medical treatment, you’ll be the one to agree to it
• You must protect the child and maintain their wellbeing
• You should discipline the child in order to bring them up correctly
• You’ll need to choose – and provide for – the child’s education
• You may have to determine the child’s religion (or lack thereof)
• If the child’s name is changed, that will be your responsibility
• If the child has to go out of the UK (even for emigration), you’ll have to accompany them
• You will be responsible for the child’s property

Please note, this isn’t a complete or definitive list but is our best advice about what to expect if you are appointed Testamentary Guardian for a child or children through someone’s Will. Do seek professional advice if you find yourself in this position, or think you ever will do so. It’s an incredibly important role which no-one wants to get wrong.

This is a question we are often asked, and there seems to be a great deal of confusion surrounding the question. So: are unmarried couples recognised by law, or not?

The truth is, no, they are not. There is no such thing as a common-law spouse, no matter how many people tell you otherwise. What does this mean for those in a long-term but unmarried relationship? Unless you are husband and wife, or civil partners, you simply have to plan your financial affairs meticulously, and much more carefully than those who are married. In particular, you should pay attention to what happens should one of you die. Don’t let your affairs be handled by the Laws of Intestacy – the laws which take over when someone dies without a valid Will. If you are unmarried, the Laws will state that your entire Estate passes to your closest relatives. Your partner will have to go through the courts to receive anything and there is absolutely no guarantee the outcome will be what they hoped for.

This doesn’t mean that it needs to be a mammoth task. Planning your Will, pensions and life insurance as an unmarried partner can be made easy and relatively quick, if you talk to a qualified professional who takes the time to understand your unique situation.

Here is our advice for financial planning as an unmarried partner

Wills

It is vital that you make a Will to ensure that your cash, savings, property and other assets pass to people exactly according to your wishes. Otherwise, Government Laws will take over and your Estate could end up passing to a relative you’ve never met, or fell out with years ago. Your partner could certainly end up with nothing at all, as they will not be recognised in the eyes of the law. This could leave them not only in financial crisis but in emotional turmoil at an already difficult time in their lives. Your Will can also be used to indicate who should be guardian of your children: another very important factor to consider.

Inheritance tax

If you are unmarried, any part of your Estate over the nil rate band (currently £325,000) left to your partner will be hit by 40% tax. However, there are ways to minimise these hefty tax liabilities with the correct advice. You could equalise your Estates (by owning your assets 50/50 to bring each partner’s Estate under the nil tax band). Or you could consider jointly owning any property. There are several ways to do this, and we can help you avoid a capital gains charge. Please talk to us before finalising your plans for minimising Inheritance tax pressures.

Pensions

You should nominate your partner to receive any lump sum payments detailed under “death in service” (if you have a pension scheme through your employer). This will protect your pension from Laws of Intestacy, which would see your money passing to your family instead. You should also check the details of your employer’s pension scheme: does it pay a survivor’s pension to your partner? If you have a stakeholder or personal pension, ensure you have nominated your partner as recipient of the fund’s value. This will protect it from Inheritance Tax and those Laws of Intestacy.

Life insurance

Do you have life insurance as mortgage protection? You must make sure these are put in trust for your partner’s benefit on the event of your death. This – along with plans to protect your children – can be written in trust.

We make it as easy as possible for unmarried partnerships to put the very best financial products in place to protect the financial status of their partner should they die. Talk to us if you are in an unmarried partnership in Kent. Please don’t leave it too late, the heartache and financial burden is very real but can be avoided with the correct selection of financial protection. Just get in touch, we’ll talk you through the process.

You can listen to my latest podcast here. In the first podcast, “Why Have a Will?”,  I discussed the importance of a will for everyone. Have a listen if you missed it.

Did you know that everyone is entitled to transfer gifts (up to a certain limit) without incurring inheritance tax? The limit is called the Nil Rate Tax Band and, for this tax year (2010/11) it is £325,000.

The Chancellor stated in his Pre-Budget Report that the unused portion of a person’s Nil Rate Tax Band can be used by their partner or spouse on their death. So, in effect, the surviving partner’s Nil Rate Tax Band has now doubled in the event of their death. This new rule applies if the first partner died before the Chancellor passed the ruling, but the second partner must have died after the date (the Chancellor announced the rule on 9th October 2007).

The new rules also apply if someone has been widowed more than once, but the total Nil Rate Tax Band can not be increased by any more than 100%.

Be aware, though, that the uplift in Nil Rate Tax Band upon the death of the second partner is not automatic. It has to be claimed, so keep detailed records of the percentage of Nil Rate Tax Band used, so you can claim unused portions in the future. This should be taken into careful account when probate is carried out.

For more information about Nil Rate Tax Bands and other personal tax issues, ask us for confidential advice. We will be pleased to help with any matters relating to making a Will, lasting power of attorney and questions about probate.

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If you need Long Term Care, your hard-earned assets could fall into the hands of your Local Authority in order to pay for the care you need. There are ways to prevent this happening, and you can set these in motion now before it’s too late.

Protect your assets in your Will

When couples make their Wills, they can set out how they wish their assets to be distributed. Your own half share (including the family home) could be placed in trust for your children or other beneficiaries, rather than being passed to your spouse. This will effectively protect your assets, including the home, from being seized to pay for Long Term Care. A Protective Property Trust Will fulfils this exact purpose, enabling you to pass assets onto loved ones but ensuring your surviving spouse continues to benefits from the assets placed in the trust.

Protective Property Trust Wills

Protective Property Trust Wills can be challenged by Local Authorities, and it’s possible that this type of Will may not protect all of the family home. They can not, for example, protect assets if both you and your spouse go into Long Term Care, and can not be set up by single people.

Use of Lifetime Trusts to protect assets

An alternative is to place your assets in a Lifetime Trust, rendering them unavailable for use as payment for Long Term Care fees (6 months after being placed in the Trust). Unlike Protective Property Trust Wills, this is a good option for single people and for couples where both members of the partnership end up needing Long Term Care. With Lifetime Trusts, no probate is necessary on death, which saves time and money.

For simple, down to earth advice on protecting your assets against Long Term Care fees, get in touch with us. We will be happy to give you our best advice and can help you in making a Will, understanding what to do when someone dies and issues such as Lasting Power of Attorney in the UK.

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