At Prestige Tax and Trust Services, we know that writing a will involves taking your current familial circumstances into account. The relationships between you and your family, as well as those between your family members themselves will influence where you will leave your assets. Most wills then are set up to distribute the assets ‘absolutely’.
Were things to change however, you could find that the money you leave is subject to unwanted influence. So how can you ensure your will goes to the right people after a divorce, re-marriage or financial/business issues?
Use Bloodline Planning
You can use bloodline planning to ensure funds are ‘ring-fenced’ or protected and stay within your bloodline as you define it. It’s a thorough procedure as it accounts for a number of possible situations within your family:
- Care Costs
- Further inheritance tax bills
- Bankruptcy/creditor claims
These plans can then take effect during your lifetime or made in preparation for death. Of course it is advisable to finalise plans when you can to protect against unforeseen circumstances.
If you decide to gift assets before your death it can be very effective in reducing the reach of inheritance tax. After 7 years such gifts are completely outside of your estate. Do so using a discretionary gift trust and the gift will not become part of the beneficiary’s estate – therefore it is protected against future claims.
Contact Prestige Tax and Trust Services if you have any issues regarding estate planning.