Pension Practitioner
The SSAS Experts

Where there’s a will there’s a way

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There are many certainties that people take for granted – that your money will be left to your spouse upon death is certainly up there for a lot of people. However, there are a few reasons that you may not want to rely on this type of bequeathing.

With a traditional mirror will, the spouse that dies first leaves their money to the surviving partner, and once that person dies, the money goes to the children. This type of traditional will is fine if you have a small and simple family, but these days, with many people enjoying second marriages with accompanying children, the issue can be much more complicated.

Without making adequate provision for your wealth, your will could be contested by ex-partners with whom you share children – even if you have set aside money to be left to them. This could mean that the plan you had for your money is overridden by lawyers and solicitors, leaving you no control of who benefits from your estate, which is not a good position to be in.

The best way to protect your estate from potential divorce, or the contesting of your will, is to put the money safely in a trust. This effectively means that you no longer ‘own’ your money, and that instead, the appointed trustee ‘owns’ the money, managing it on behalf of the listed beneficiaries.

A good example of how this can work to the benefit of your dependents is property. If you set up a trust, and name a child of yours as a beneficiary, he/she can purchase a house through the trust. If the child marries, and later divorces, the house purchased with the trust, remains property of the trust, and so is safe from any asset splitting in the divorce. This means you can protect your estate, and those you love, and keep them financially secure long after you’re gone.

Trust law is complicated. To make sure you get things right, it’s vital to get professional advice before setting up a trust. Always talk to a Solicitor or an Estate Planner. If you have any questions or need guidance concerning your SSAS, asset protection strategies and Inheritance tax , get in touch with our friendly team of SSAS and Asset Protection experts, we’d love to help.

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