With the rise in the number of people protecting their assets from excessive Taxation by the use of Trusts family lawyers are finding the unique problems they create quite a challenge .
Most children would not see their parents matrimonial home as belonging to the children at least while the parents were still alive , but what if it is placed into a Trust of which those children and their own children are potential beneficiaries ? What about the holiday home in Spain , the share portfolio , the savings carefully built up over a lifetime of work ? If mother and father split up children can get very proprietorial over their potential pot being divided between the parents alone thus in some way “removing “ the children’s entitlement .
The family courts treat these trust resources differently depending , for example on when and for what purpose the trust was set up , the value of those resources as compared to the overall property owned by the spouses outside the trust and vitally the needs of the separating couple themselves as regards housing and ongoing maintenance . How the courts deal with Trust property where only one spouse is a beneficiary or where assets are held offshore will have to be the subject of another article .
These Trusts are not just for the super rich ; with the Inheritance Tax threshold at its present level and with property prices picking up the protection afforded by Trusts is becoming more and more relevant to people who would not class themselves as “ rich “ at all . The 40% tax rate is particularly painful on the death of the surviving spouse . Our Family and Trust lawyers work closely together on these issues .
Faye Remnant is part of our Family Law team based in Loughborough; our Solicitors in Loughborough are experts in their fields and dedicated to quality client care. If you would like to find out more about our solicitors in Loughborough please contact us.
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