Ultimate Asset Protection Trust
What is an Ultimate Asset Protection Trust?
Ultimate Asset Protection Trusts are another type of Discretionary Trust but unlike Will Trusts this type of Trust is created during your lifetime and is completely independent of your Will.
This Trust can protect your assets from things such as bankruptcy, divorce and numerous other situations by ring-fencing your assets.
Ultimate Asset Protection Trusts (APT) may appear complicated but are an excellent tool to help protect your assets.
You are free to choose what you wish to place into your APT up to the current Nil Rate Band (currently £325,000 per person) depending on your circumstances.
Set up now during your lifetime, an APT can protect what you have worked hard for throughout your life, ensuring that your loved ones will benefit in the future.
Some of the numerous benefits include:
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Probate; as the APT does not form part of your Will, assets will generally pass directly to Beneficiaries without the need to go through the process of Probate.
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Divorce; nobody knows what lies ahead, an APT will ensure that only your stated Beneficiary will benefit and not their estranged spouse.
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Bankruptcy; more frequently people are finding themselves in the unfortunate position of having to declare themselves bankrupt. An APT will protect assets until after the bankrupt Beneficiary has been discharged.
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Claims; unlike a Will where anybody can make a claim against your estate should they feel that they have the right, an APT cannot usually be challenged in the same way.
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Estate Dilution; without an APT when a surviving spouse remarries and has more children with a new partner, your children stand to lose their inheritance through estate dilution.
An APT cannot be used as a quick fix when you are aware that you are about to become divorced or bankrupt, likewise, an APT cannot be used solely to prevent paying care fees in the future.
Trust FAQs
What is the purpose of a trust?
How does a trust Work?
Who Creates a Trust?
What is a Trustee?
Trusts offer a means of holding and managing money or property for people who may not be ready or able to manage it for themselves. Trusts can protect your assets, such as your home. They can help ensure that your assets are passed on in accordance with your wishes after you die.
A Trustee should be appointed to legally manage and administer the Trust in accordance with the wishes of the person creating the Trust.
A Trust can either be set up by you during your lifetime or by your Trustee after your death and in accordance with your Will.
Trustees are the ‘legal holders’ of any Trust property and they manage and distribute the Trust assets. There can be one or more Trustees.