Case Study One |
Case Study Two |
Case Study Three
Family Protection
Mr & Mrs R have 3 children aged 3, 5 & 11. They have an estate of £325,000
and are concerned that if they both died the children may not inherit
all of their estate (in equal shares). They are further concerned that because
one of their children is disabled, any legacy left to that child may be swallowed
up in future care fee’s and they are adamant that they do not want the family
to be split up if they died.
Recommendation
Clients require Mirror Wills that reflect both of their wishes. They need to appoint
each other as Executors. They also need to appoint trusted individual’s
(family or close friend/trusted
Professional) to act as Executors if they both
die (or at second death).
As their Children are all under the age of 18, they
must appoint Guardians (trusted individuals
who will look after the children
if they become orphaned).
This is extremely important, it will stop the
Children from potential
fostering/Local
Authority Care and keep the Family
together. To protect the disabled child,
the legacy that would normally pass
directly to that child (one third of estate),
should be place in a ‘Special Disabled
Trust’ for the absolute benefit of the child.
This is a ‘protective Trust, that is ‘hostile creditor’ proof (Local Authority/Court
of Protection etc), preserving ALL assets for that nominated individual
(there is NO upper age limit for this trust & can last for 80 years from creation).
