Family Protection Trust
Protecting your assets against enforcement
Most of your family wealth is in your property and investments. A Family Protection Trust ring-fences them and insulates from the effects of unexpected liabilities.
Websites promote them for protection from Inheritance Tax and Long Term care fees, both of which, can disinherit your intended beneficiaries. It also protects you from the effects of divorce, charging orders, bankruptcy and bailiffs.
Family Protection Trusts are expensive and often made from boilerplates mass produced in an office. The cost arises in the marketing, akin to double glazing sales in the 1970s and you are paying the commission to a home-visit representative giving the spiel on the benefits of the trust.
This website is about protecting yourself from the effects of bailiffs. But when bailiff action fails, a creditor can move to a charging order on your home, or a bankruptcy petition.
A established Family Protection Trust protects your wealth and assets from these.
How does a Family Protection Trust work?
It transfers and holds your property and assets into a trust, managed by your trustees.
You no longer own it because your trustees hold it on trust for you.
Your trustees are now in charge of your assets, and neither they, nor the trust is liable for your debts.
You can choose your trustees. They can be family and close friends. You need two more of them, but above all, they must be trustworthy, so choose them carefully.
You set up and register a Lasting Power of Attorney, giving directions to your trustees, and that gives you the right of use of your family wealth, such as buying a new home, a car, setting up a business, or moving money around. In fact anything, and you can treat is as if you still own it.
Any statutory liability, or a Court Order made against you becomes ineffective, because your home and assets are no longer available. You no longer own them, only have the RIGHT OF USE.
The Family Protection Trust also protects from sideways disinheritance, such as ‘predatory spouse’. This is where your child stands to inherit, but is vulnerable to the effect of divorce or separation and divorcing away your wealth away from your family line or intended beneficiaries.
It ensures your wealth benefits who you want it to benefit, and not your beneficiary's creditors.
There is no such thing as an 'insurance policy' that can protect your wealth in this way.
If bailiff removes goods belonging to the trust, the trustees make an claim to controlled goods.
The law
The trust is 100% legal and follows the Trustee Act 2000 and the Power of Attorney follows the Mental Capacity Act 2005.