“Trusts Are For The Mega-Rich Only. I Don’t Need One”

How many times have I heard that statement? It is indeed true that rich folk do have Trusts, and often, multiple ones. Here at Prior Knowledge we believe that Trusts have many, worthwhile, multiple benefits applicable to just about everybody, and not just the rich.

So here are just five, every day examples of where Trusts are incredibly beneficial to ‘normal’, ‘ordinary’, ‘every day’ families.

1) Sideways Disinheritance. If you leave everything to your spouse, and they remarry, what guarantee do you have that those assets don’t then pass to the new spouse and THEIR children, rather than yours? This problem is far more common than you may believe, with the internet full of such stories. Creating a Trust can avoid that.

2) Disabled and/or Vulnerable Beneficiaries. Leaving assets outright to such a person can cause all kinds of potential problems for that person going forward. An appropriate Trust will avoid many, or even all, of the many potential pitfalls.

3) Long Term Care Costs. The use of Trusts can, in most cases. avoid the whole estate being used to pay for one person’s care. Spouse A dies, leaving all to Spouse B. Spouse B then goes into care meaning the whole lot potentially gets used to pay for Spouse B’s care, including Spouse A’s share, even though Spouse A isn’t themselves in care.

4) Predatory Marriage. An increasing problem these days. This is where unsavoury individuals seek out people who have a bit of money and/or property with poor mental capacity. They then marry them, often in secret. Because the 1837 Wills Act revokes all earlier Wills on marriage, the older person then dies, and, because they have been legally married, the new, much younger spouse inherits maybe all, or a big chunk of the estate under the ‘Laws of Intestacy’, as there is no new Will. As in point 1, a trust can often avoid the whole estate being caught up in this by ring-fencing part of it.

5) Dysfunctional Families or ‘Issues’. How often do we hear about families who have wild children or drug takers, or alcoholics? Or their child is in with a bad crowd and maybe a bit of a “wrong-un”? Or even where one child is married to a narcissist or someone who is controlling. Many times clients worry that their offspring will inherit too much money, or too soon, or in the wrong circumstances. Again, the use of a particular kind of Trust can be very beneficial to ensure that the client can have some influence over the timing, circumstances and quantum of any inheritance received by offspring.

Over 95%+ of Prior Knowledge’s clients invest in a Trust because they are absolutely sold on the multiple benefits they can offer; contact us to see how a Trust may work for you and your family.

The first consultation is always free and non-obligatory, usually in your own home, daytime or evening.