Trust Examples

Some examples of family situations where we have used trusts are:-

  • To protect death benefits on life cover policies from Inheritance tax, probate delays or remarriage of a partner.
  • To provide for a husband or wife after death while protecting the interests of any children.
  • To reduce the liability on the matrimonial home from care fees after the death of a partner.
  • To provide protected inheritance to your children to prevent it being lost due to divorce or sepeartion.
  • To protect gifts to children when assisting them buying a house.
  • To help succession planning in family business.

Consider the Following

A legacy left to a child totalling £250,000, the child subsequently marries and later on divorces. The legacy could be successfully challenged as part of a 50% divorce settlement resulting in a loss to your legacy of £125,000.

As you can see social risks can pose even more of a threat then the traditional tax issues and hence the increase in interest in such planning. Through the use of a Stratford Collins Family trust structure the example would have resulted in the legacy potentially reverting back into the family trust intact as illustrated below, with the £250,000 available for payment to the son after the divorce was finalised.