Probate Trusts are really useful way of reducing the cost and aggravation of dealing with all the paperwork after a death in the family. It also offers a great deal of protection – more of that elsewhere.
Effectively the probate trust takes the assets in it (typically the home) outside of the estate from the point of view of probate. This massively simplifies the paperwork after a death, and in some cases can almost eliminate it.
The Legacy Trust also offers massive flexibility. If it is your wish, and the circumstances are appropriate, the benefits of the probate trust can continue for as much as 125 years. Within that time, your home could remain in the family, or it could be sold. The cash could then be used to lend money to future generations. Perhaps for house purchase, university fees – whatever you wish. Or the loans could be repayable – to recycle the money, or to avoid it leaving the family in divorce settlements.
One thing a probate trust does NOT do is to take the assets within it outside of the net for Inheritance Tax purposes. The practical issue here is that the rest of the estate has to bear the cost of Inheritance Tax. It is rarely a real problem, but it is something we should discuss with you.
Inheritance Tax also complicates the issue if the home is worth (at present) near or more than £325,000 for a single person or £650,000 for a couple. Under these circumstances, Inheritance Tax may create additional costs, so we would need to review your circumstances carefully before proceeding.
For more information on Legacy Trusts, give is a call on 01323 741203 or use the enquiry form. We’re happy to have a brief no obligation chat and we don’t employ sales people.
Have a browse round the site for some of the other advantages of Probate Protection Plans – which we call the Legacy Probate Home Protection Plan.