Savings Trust: To Protect Savings and Investments
A savings trust is perfect for the many people wish to protect savings but may or may not own their own homes. Enquire.The Family Bank
We have a special Savings Trust for such circumstances into which you can transfer pretty much any sort of asset, especially to protect savings. The Savings Trust does normally remain part of your estate for Inheritance Tax purposes, so if the savings and investments to be protected are significant, financial advice will also be needed.
The process is very straightforward. Savings and investments are transferred into the Savings Trust in a tax-efficient wrapper, and you still retain control over them during your lifetime.
Two major advantages of this strategy to protect savings:
1) The assets concerted will not require expensive and slow probate, the savings can simply be assigned out of the trust on your death.
2) As long as the assets are not put into the Trust to deliberately avoid creditors such as business debts or Care Fees, they will be secure against such creditors as the law stands.
It is one of those strategies where heads you win and tails you win. On the one hand, Probate costs and delays are avoided. On the other, you protect the savings against potential creditors such as Care Fees. Even if you don’t need Long Term Care, your family will have a much easier and more stress free time when you die, and save a fortune in solicitors fees.
But what if I need income AND to protect savings? Will the Savings Trust allow that?
It is possible to arrange regular or occasional withdrawals from the Savings Trust. You can even take the whole lot out again if you wish. Whilst the money legally belongs to your Savings Trust, it is there to help you.
What happens if I need Long Term Care? How does the Savings Trust help?
The Local Authority cannot force you to spend your Savings Trust on care fees, as they could if your savings were not in the Savings Trust. However, your Trustees will be on the look out for opportunities to provide extras to make your life more pleasant in those circumstances, but at their option, rather than at the Local Councils.
For information on the Savings Trust, and to see if might be appropriate for you, pop your details into the form below. Give us an idea of the amount and type of savings and investments you have. We will not pass this information on to anyone else.
For more information on how to use a savings trust, click the link.
The video is a US one, but it does make a lot of interesting points, though clearly circumstances are not quite the same in the UK.