Evening and Weekend Home Visits Available In Horsham, Crawley & Surrounding Area.
Evening and Weekend Home Visits Available In Horsham, Crawley & Surrounding Area.
The Estate Allocation Trust (EAT) is a bespoke Living Trust designed to protect your property and Assets. It is available as a single or a joint trust.
For a Joint Trust, couples receive one trust that splits the property into separate funds for each person, each fund is protected from the others liabilities but each person can still benefit from the property during their lifetime including any income generated after which it will be passed to the ultimate beneficiaries.
If your ultimate beneficiaries are your children then they will inherit the Trust’s Assets on 2nd death, they will not need to apply for probate and their inheritance is protected should your surviving spouse remarry or need long term care.
All Our Trusts are professionally drafted by our legal partners, prices start from £1100 and can be completed and in place within 5 to 10 days.
Benefits of The Estate Allocation Trust:
When assets are transferred to an Estate Allocation Trust a discretionary trust is set up to the amount of the available Nil Rate Band (max £325,000 per person) Once this portion of the fund is filled the residential Nil rate band portion is then filled (£175,000 per person) and held in a Bare Trust as is any further assets above both available Nil rate bands. So as your property increases in value over time it will firstly fill the Nil rate band fund then the residential nil rate band section and then into the excess bare trust.
For Example if a married couple place their property into an Estate Allocation Trust at a value of £800,000, £650,000 will be placed into the Nil Rate Band section & £150,000 will go into the Residential Nil Rate Band section. Over the next 10 years the property increases in value to £1,100,000, the fund would then hold £650,000 in the Nil Rate Band Funds , £350,000 in the Residential Nil Rate Band Funds and the remaining £100,000 held in the excess Bare Trust.
These funds are split in Two and are protected for each persons intended beneficiaries to ensure that your family and your legacy are protected.
You should be aware that putting assets into Trust does not mean you do not have to pay Care Fees and any structure created can be challenged by the local authority if they believe that the Trust was created for the sole purpose of trying to avoid paying care fees. It can however protect part of your estate from means testing and give you control of how care fees should be paid rather than being forced to sell the family home.
Living Trusts do not automatically reduce your Estates Liability to Inheritance Tax unless you are not receiving any benefits from the trust property and have relinquished all control over them. For Example if you have put your house in trust but are still living in it and not paying market rate rent then this is classed as a reservation with benefits and although probate will not be needed for trust assets they are still assessed as part of your estate for Inheritance Tax purposes.
To Find out more about our Living Trusts please call us on 01403 432866 or email martin@rainefinancial.co.uk
To Find out more please contact us Today on 01403 432866 or email martin@rainefinancial.co.uk
Raine Financial Ltd
50 Hurst Court, Horsham West Sussex RH12 2EW
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Raine Financial Ltd