Why Make A Double Trust Will?
A Double Trust Will is designed to prevent assets from being lost to your future generations in the following circumstances:
Being used to pay care fees
What if one of you dies and the survivor must go into care?
In these circumstances, all the family assets including the family home can be used by the Local Authority to pay care fees.
Being lost on the survivor’s remarriage
What if one of you passes away and the survivor were to remarry or has a new partner?
This can cause problems for your children’s inheritance as the estate may become diluted with that of the future spouse and their children, or even become the property of the children of the new spouse entirely.
Your children’s inheritance can also be lost if the survivor does not remarry but has a new partner who persuades the survivor to write a new Will or put the house in joint names.
Being lost on your children’s divorce
What if your children divorce?
In these circumstances, assets that have been inherited from you directly may end up in their ex-spouse’s family.
Being used to pay Inheritance Tax
What if your children inherit from you directly and they are already over the Inheritance Tax threshold?
In these circumstances, Inheritance Tax may have to be paid on your assets when they die even if these have already been taxed.
How to ensure that your children can also claim the additional Residence Nil Rate Band [RNRB] Inheritance Tax allowances?
Property Trust (First Trust)
The solution is to leave all or part of your property directly to your children (or other direct descendants) on the second death. The Trust is known as a Property Trust.
As before, the first of you to die put their assets into a trust which keeps these assets safe from being used to pay care fees or being lost on the survivor’s remarriage but the proceeds from the Property Trust are inherited directly on the second death, thus qualifying for the Residence Nil Rate Band allowances.
How to protect your family assets?
Flexible Family Trust (Second Trust)
If the first of you to die puts their assets into a trust, this will keep them safe from all these circumstances as they will never become part of the survivor’s estate. The trust is known as the Flexible Family Trust.
By leaving the survivor a life interest in the use of the deceased share of the main residence, they remain secure in the family home. Likewise, a life interest in the income from the other assets in the deceased trust gives the survivor security of income.
On the second death, the children will be able to protect these assets from being lost in the event of divorce or bankruptcy and then leave the assets to their grandchildren and great-grandchildren free of inheritance tax. The trust can continue for 125 years.
How do I know if a Double Trust Will is right for me?
Our expert consultants take the opportunity to understand your needs and give information on your specific circumstances. Our help is free of charge up to the point we take your instructions and you decide to proceed with legal documents.
What are the benefits of a Double Trust Will?
Care Fee Protection
Family assets including the family home can be protected from Local Authority care fees.
Surviving partner’s remarriage protection
Your children’s inheritance can be protected from passing to the children of the new spouse or becoming diluted with that of the future spouse and their children.
Children’s divorce protection
Your children’s inheritance can be protected from their ex-spouse’s family if they divorce.
Children over the Inheritance Tax threshold
Your children’s inheritance can be protected even if they are already over the Inheritance Tax threshold?
For all our estate planning and will writing services, including more intricate Trust Wills or Lasting Powers of Attorney, we will discuss your specific wishes and requirements with you first and agree on the fee with you if you then wish us to draft the legal documents.