The Four Benefits of a Family Asset Protection Trust
If a client places their assets into a Family Asset Protection Trust, no probate procedure needs to be carried out upon their death.
If a client dies, leaving their assets to their spouse and their spouse remarries in the future, the estate may then transfer to the spouse's new husband or wife. Should the new partner not put this right before their death, the estate could then fall to his or her children, rather than the original couple's children, who would be disinherited. Assets in a Trust protect children against this disinheritance.
Should a client's child suffer from problems such as gambling, drug or alcohol addiction, it may not be wise for them to have immediate access to their parents' assets, should they pass away. Although we would always hope this is not the case, it does happen and cannot always be foreseen by parents. Placing your assets in a Trust grants the Trustees the power to decide when you would have wished for your child to receive your assets to both protect the assets and benefit the child, should such a problem arise.
If a client places their assets into a Trust, they can avoid the costs of setting up an LPA. This way, if a client does lose mental capacity due to injury or illness, the Trustees take their place and control the Trust assets on their behalf.