Protection against sideways disinheritance.
If you pass away first and your spouse marries again, this revokes any previous Will by your widow. If your spouse dies without a Will in place, the children from your relationship may find that their inheritance has legally gone to the surviving spouse through the law of Intestacy. Your own children could inherit nothing.
You may also want to protect your children’s inheritance in case they divorce.
One of the mechanisms that we use is a Trust.
Trusts can ensure that assets remain in your bloodline and direct family line rather than going to a widow or a widower’s next spouse, beneficiaries’ partners post-divorce, beneficiaries’ creditors or the tax man.
Trust assets are not required to go through probate. The probate period can last four weeks to four years in extreme cases. You can also save on costly probate fees.
Carefully structured Trusts may limit your liability for any future social care costs.
You can save on Inheritance Tax too.
Inheritance Tax (IHT)
You can also include Inheritance tax planning to mitigate for future generations. It is possible to reduce the amount of IHT your beneficiaries may have to pay.
Preserve the Inheritance Tax Nil rate Band of the first person to die so that it can be used on second death. Any unused nil rate band from the first partner who dies can be can be utilised by the second partner when they die.