Severance of Tenancy

MARRIAGE & DEATH – placing half the family home and assets into a trust on the first death ensures that should the surviving spouse remarry in the future, those assets cannot be taken into te second marriage and removes the threat of your own children being disinherited. The survivor is still ale to use the assets in the trust.
DIVORCE – placing the assets into trust ensures that if your children as chosen beneficiaries are subject to divorce proceedings then what you intended them to receive is protected from any divorce settlements.
CARE – holding the assets in the trust ensures that they do not add onto the beneficiaries own estate and so cannot be assessed for their care costs.
CREDITORS OR BANKRUPTCY – similar, if any of your beneficiaries are subject to creditors claims/bankruptcy then their inheritance would not be exposed to these claims.
FURTHER OR GENERATION IHT – holding the assets in a trust ensures that they do not add to the beneficiaries estate and impact on their own inheritance tax.

In 2023 there were 122 contested probate cases, up from 116 cases in 2022, according to the Ministry of Justice Family Court Statistics.

Philip Collins, Partner at Winckworth Sherwood, said that it “isn’t at all surprising” that there has been a rise in contested probate claims. He said: “We know that significant amounts of wealth, often tied up in property, is currently being passed down to younger generations. Inherited wealth is becoming increasingly important and can often […]