Asset Protection Trusts
An Asset Protection Trust (APT) also known as Family Protection Trust (FPT) is a legal arrangement where one or more ‘Trustees’ are made legally responsible for holding assets. The assets you can protect in the Asset Protection Trust (APT) are your home as your main asset, or your share of it, savings, chattels, antiques or any other valuables you may wish to protect. There is a threshold of £325,000 per person (£650,000 for married couples) for each Trust, without incurring IHT charges.
What to do?
To place your property into an ‘Asset Protection Trust’ (APT), we will tailor your Trust according to how much your estate is worth. It may be that you will need more than one trust if your estate is worth more than £650,000.
Furthermore, other creditors will not be able to make a claim on your property or assets during your lifetime, or on your estate when you have died.
Benefits of an Asset Protection Trust?
- Protects your properties, monies and other assets.
- You have control over the estate during your lifetime, and therefore the Trustees are duty bound to abide by your wishes.
- You are able to sell your properties whenever you wish, and receive the full sale proceeds.
- You are able to rent the property out and receive the income via the Asset Protection Trust.
- Protects your estate from creditors, e.g. commercial and residential landlords.
- Protects your estate from unscrupulous partners of your children or grandchildren.
- No Stamp Duty Land Tax liability on transfers into Trust.
Future Plan Your Life
Asset Protection is becoming more relevant today than it ever has, due to the decline in the economy and the Government’s never ending pursuit of those with assets and savings, who they consider should pay more than those who are not in as comfortable a position.
In the current fragile economy, people are concerned to protect and save what they have. Business owners are, in many cases, exposed to banks and creditors. Homeowners are exposed to personal debt and creditors in addition to any family disputes. The Asset Protection Trust is designed to protect your main assets from the above, and looks to help pass on your inheritance as part of your overall life planning, helping to ensure your home and assets go to those you wish.
Throughout, you will have complete access and control over your Trust assets during your lifetime.