So what Trusts can I use to protect my assets on death?
There are several types of Trusts you can put in your Will to ensure your assets at death will reach your chosen beneficiaries.
Firstly there is a Property Protection Trust which can provide a protective shelter for the value of your home allowing your partner or spouse to remain in occupation rent free for the rest of their life after which it is passed on to your chosen beneficiaries. This is especially useful where property is owned as ‘Tenants in Common’ and the two halves are bequeathed to different beneficiaries following ,say, second marriages.
Then there is an Asset Protection Trust which is where all of the deceased person’s assets do not pass automatically to the surviving spouse or partner but are placed in a Trust where any income earned on the investment of those assets is paid to the survivor for life. The capital is retained for the named beneficiaries and cannot be used if the survivor chooses to remarry or change their Will
A further alternative is to introduce a Discretionary Trust into your Will which can also provide protection of your assets but can make discretionary payments to named beneficiaries who are undergoing difficult circumstances such as divorce, bankruptcy etc. It can also be used for persons who do not have the mental capacity to look after money. With such Trusts care must be exercised over the choice of Trustees.
There are then various other alternative forms of Will Trusts such as a Spousal Bypass Trust, A Revocable Life Interest Trust, a Business Trust all designed for different sets of circumstances but ensuring assets at death are protected and eventually reach the persons you want to benefit.