By: Edward Hewitt
“Uncertainty is the only certainty there is, and knowing how to live with insecurity is the only security.” A popular quote from the mathematician John Allen Paulos.
We all face uncertainty throughout our lives; relationships can be fragile, businesses can boom or bust with the markets, and we cannot take our health for granted! So, how do we create security for our loved ones in this world of uncertainty?
If it is your intention to leave an inheritance for your children’s benefit, why not consider leaving the inheritance in trust? A trust can act as a protective wrapper, enabling your children to benefit without it forming part of their estate and becoming vulnerable to divorce, creditors in bankruptcy, long term care means testing, or even unwise decision making. If your children cannot manage an inheritance, perhaps due to illness or disability, or may not be responsible and make sensible decisions, a trust can add valuable security.
If you would like to discuss your options on how to protect the inheritance you wish to leave your children, get in touch today for a free confidential review of your circumstances. You have worked your whole life for what you have today. Perhaps you have been paying a mortgage for 25 – 30 years, investing in your home until finally reaching that milestone and paying off the loan. You have worked and paid taxes, perhaps built a business and reaped the rewards of your hard work. You have saved and invested, perhaps making provision for your latter years.
You may like to see the proceeds of your work pass on to your children. We all want our children to have better than we have had ourselves and leaving an inheritance for our children can be a proud moment, leaving security and comfort for our loved ones when we are no longer around. A legacy of our hard work left behind.
Life carries with it so many challenges and our children will face them all, as we have done. Some may face struggles in a marriage which may ultimately lead to divorce. Some may face struggles with a business which may lead to debt and even bankruptcy. Some may face challenges with their health, through illness, disability, drug or alcohol abuse and struggle to find or maintain a job, while facing medical expenses. We may like to leave something for our children to fall back on during these challenging times in their lives. However,
if we do not leave them in a secure and protected environment, the gift we leave behind may be lost to the challenge
Is there anyone in your circumstance who fits this picture and may wish to leave an inheritance in a protected environment?
A discretionary trust is a legal structure, and we all have the ability to create one. Should you write provision in your Will, a discretionary trust can be established on your death and your assets can pass into it, therefore it has no impact on your and your assets during your lifetime.
On death, when your estate goes through probate a discretionary trust would be established and your assets pass into it. The trust can hold any assets ranging from property, to money, to investments. Once in the trust these assets are managed by your Trustees, for the benefit of your beneficiaries.
The trustees can be people of your choice, perhaps your children, or close family friends, maybe a professional. Your beneficiaries are the group of people you would like to be able to benefit, and they will be the only people who can. The trust keeps the assets in a protected environment, and your family can benefit from generation to generation.
• Have you made a Will? If so, have you left everything directly to the beneficiaries themselves?
• Are any of your beneficiaries going through a challenge,r may go through a challenge in the future?
• Would you like to ensure the inheritance you leave can be protected?
What we do…!
• Get in touch today to arrange a full confidential review at no financial cost.
• We will discuss your circumstances with you to help you understand the options with regards leaving an inheritance.
• We charge fixed fees for our services and offer clarity and transparency, so you will always know the cost before
making a decision.
About the Author
Managing Director of Mayfair Estate Planning
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