An Asset Protection Trust is a “Settlor Interested Flexible Interest in Possession Trust”.  This means that the Settlor retains an interest in the Trusts assets, but this is flexible so that in the future, the Settlor can decide to transfer this interest to someone else. For example the beneficiaries of the Trust.

The interest retained is an “Interest in Possession”. This means that the Settlor can control the assets within the Trust. If the Asset in the Trust is a house the Settlor can continue to live in the property free of rent indefinitely. In practical terms this means that the beneficiaries will effectively own the property, but the person placing assets in trust does not lose the legal right to occupy or benefit from the asset.

This Trust also has the added advantage that it protects the value of a home from future taxes and possible future care fees. As such this prevents it being used by a local authority if care was required, whether that be in a nursing home or sheltered accommodation.

To read more information on Asset Protection Trusts request your copy of our 24 Page Exclusive Estate Planning Brochure by clicking the Book Appointment Button to the right. You can also take advantage of our Non Cost Consultation here or ask a question.

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