Protecting your children's inheritance: with the best Will in the world...

Protecting your children's inheritance: with the best Will in the world...

Bespoke estate planning can protect your wealth so that it can be passed on securely to your loved ones. MVL can help put that planning in place...

Everyone knows they need a Will, yet so many of us don’t have one - more than 60% of the population at last count. And yet a Will may be one of the most important documents we’ll ever make. After all, it determines how your wealth is to be apportioned after you’re gone, and to whom. Without a will, much will be decided by the State, including who is to bring up your children. What can be more important than that?

Let’s say you’ve made a will – is that ‘job done’? Well not necessarily; not if you want to ensure your money or property stays in your family. Take divorce for example: some might be surprised to learn that Britain has the highest divorce rate in the EU - nearly 40%. Divorce might well leave your son or daughter distraught but how would they feel if the divorce courts allowed their ex-spouse to walk off with half the money they had just inherited from you?

Then there’s the son who lost his inheritance to creditors when his business went bust. Or the grandchildren who were left with nothing of their grandparents’ wealth when their widowed father passed away, leaving everything to his new wife… and then she to her own children.

When you also think that your children’s inheritance could be at risk from further inheritance tax (after the government’s already taken a slice from your estate), care costs and various other threats, you might well feel you need to take some action to protect your wealth for your children and their families to enjoy.

With a will that distributes your wealth to a Trust, that money remains outside their estate and therefore is not attackable. Trusts were often thought to be the domain of the wealthy but they’re really not that expensive; and when you think of the protection they offer, the money would seem well spent.

The ex-son or daughter-in-law cannot get their hands on your child’s inheritance, which is also safe from creditors, local authorities… even the inheritance tax man. The beneficiary, however, can have full access, though borrowing (interest-free) from the trust has various advantages.

Yes, making a Will is crucial as leaving our loved ones to face the problems of intestacy when they’re grieving the loss of a parent or spouse is not a scenario any of us would wish. But adding wealth protection to your Will is an excellent way to ensure your money and property stays in your family line. Can you afford not to do it?

MVL Wills and Trusts can help put your bespoke planning in place. Call Andrew Mathias on 01424 577070 or email [email protected] for a free consultation.