Asset Protection uses a number of processes to ensure your estate retains its value, this involves putting into place plans to prevent unexpected claims on the estate. The foundation of asset protection is severing the legal connection between the assets and the assets’ creator (owner). Trusts must be created before any issues arise, they will be disregarded should they be attempted to be brought into play in problematic times.
Asset protection can protect against:
– Inheritance tax: all or some inheritance can be avoided, without tax evasion. Asset protection deals with this legally.
– Probate fees and the need to apply for a grant of probate are waived. This saves a lot of time and money for the beneficiaries of your estate.
– Care home fees may not be required to be paid by the individual themselves in old age should you fit the correct criteria.
– Can protect your assets if you are going into business, be this a joint partnership or a potentially risky personal venture. This is a particularly important one in the current financial climate as however foolproof you business plan may seem and however reliable your partner may currently be, the future may not necessarily be as rosy.
– Can protect against bankruptcy
– Will protect you financially you should you divorce your partner
– Court of Protection control: this applies to a situation in which you lose the mental capacity to be able to deal with your own estate anymore. This may be due to a degenerative disorder such as Parkinson’s or Alzheimer’s. In a situation such as this you would usually appoint someone under Power of Attorney to deal with your estate on your behalf. However, they would have to go via the Court of Protection regarding every decision they made. Asset Protection may allow your family to avoid this bureaucratic red tape when dealing with your estate on your behalf.
All of these will not be able to be achieved in every situation but in most situations you will be able to achieve all of the above with your asset protection plan if you consult with a specialist solicitor. Contacting a solicitor to talk through your options is highly advised. Different plans and different solicitors offer different things so do make sure you find a plan you are comfortable with and suits you down to a‘t’. Some plans allow you to fully reverse your plan at any time, others do not.
Roskell Davies are highly experienced in the area of legal Asset Protection. Call us on 0800 142 2901 or fill in an online enquiry.