Planning for the future is a crucial step for any parent. A key part of this planning involves ensuring that your assets, the fruits of your labour, pass to your children as you intend. Unfortunately, without careful planning, this may not happen. Remarriage, step-families, and other unforeseen circumstances can complicate inheritance, potentially diverting your assets away from your children. This is where Bloodline Wills come into play. At Blackstone Solicitors, we understand the importance of securing your children’s inheritance and offer expert guidance on creating Bloodline Wills for clients across England and Wales.
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For a free initial discussion with a member of our New Enquiries Team, get in touch with us today. We are experienced in dealing with all the legal aspects of Bloodline trusts and once instructed, we will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you are on the best possible footing from the start and also avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.
The Challenges of Inheritance Planning
Many people assume that their assets will automatically pass to their children upon their death. While this may be the case in some simple situations, it’s not always guaranteed. Several factors can complicate inheritance, including:
- Remarriage: If you remarry, your new spouse may have a claim on your estate. They might even outlive you and subsequently leave your assets to their own children, effectively disinheriting your children.
- Step-Families: Blended families can present complex inheritance challenges. Without careful planning, your step-children could potentially inherit assets that you intended for your own children.
- Children Predeceasing You: If one of your children dies before you, their share of your estate may pass to their spouse or children, potentially diverting assets away from your other children.
- Intestacy: Dying without a Will (intestate) can lead to your assets being distributed according to legal rules, which may not align with your wishes. These rules often favour a surviving spouse, potentially leaving your children with a smaller share than you intended.
- Care Home Fees: In some circumstances, assets intended for your children could be used to pay for your care home fees, reducing the inheritance they ultimately receive.
What is a Bloodline Will?
A Bloodline Will, also known as a Family Bloodline Will or Lineage Will, is a Will specifically designed to keep assets within your direct bloodline. Its primary objective is to ensure that your assets pass to your children and, ultimately, to your grandchildren, preventing them from being diverted to unintended beneficiaries.
Unlike a traditional Will, a Bloodline Will typically utilises trusts to hold and manage assets. This structure provides a greater degree of control over how and when your children receive their inheritance, offering vital protection against the challenges mentioned above.
How Bloodline Wills Protect Your Children’s Inheritance
Bloodline Wills, often incorporating trusts, offer several mechanisms to safeguard your children’s inheritance:
- Trust Structures: Assets are held within a trust, legally owned by the trustees, not the beneficiaries (your children). This separation of ownership is crucial. It means that if a child faces financial difficulties or gets divorced, the assets held in the trust are generally protected.
- Discretionary Trusts: These trusts give the trustees the power to decide how and when to distribute trust assets to the beneficiaries. This flexibility is invaluable. For example, the trustees can choose to withhold distributions if a child is going through a divorce, preventing those assets from being included in the settlement. They can also make distributions based on a child’s needs, such as for education or housing.
- Life Interest Trusts: These trusts allow a surviving spouse to benefit from the income generated by the trust assets during their lifetime, while the capital remains within the trust, ultimately passing to your children. This can provide financial security for your spouse while ensuring your children inherit the capital.
- Protective Trusts: These trusts are designed to protect vulnerable beneficiaries, such as children with disabilities or those struggling with addiction. The trust terms can restrict access to the assets, ensuring they are used for the child’s benefit and not mismanaged or seized by creditors.
Addressing Specific Concerns
- Remarriage: A Bloodline Will can ensure that your assets pass to your children, even if you remarry. By using a trust structure, you can provide for your spouse during their lifetime while guaranteeing that the capital ultimately goes to your children.
- Step-Families: Bloodline Wills are particularly important in blended families. They can clearly define who should inherit your assets, preventing any unintended beneficiaries from benefiting.
- Children Predeceasing You: A well-drafted Bloodline Will can specify what happens to a child’s share of the estate if they die before you. It can ensure that their share passes to their children (your grandchildren), maintaining the bloodline.
- Care Home Fees: While not a foolproof solution, a carefully structured Bloodline Will, particularly one using a discretionary trust, can offer some protection against care home fees. However, this is a complex area, and specialist legal advice is essential.
Key Considerations When Creating a Bloodline Will
Creating a Bloodline Will requires careful planning and expert legal advice. Here are some key factors to consider:
- Choosing the Right Trustees: Trustees have a significant responsibility. They must manage the trust assets prudently and act in the best interests of the beneficiaries. Choosing trustworthy and capable individuals is crucial. Professional trustees, such as solicitors or trust corporations, can also be appointed.
- Defining the Beneficiaries: Clearly identifying the beneficiaries of the trust is essential. The Will should specify who is entitled to benefit from the trust assets and under what circumstances.
- Setting out the Terms of the Trust: The trust document must clearly outline how the trust assets should be managed and distributed. This includes specifying the powers and duties of the trustees, the beneficiaries’ entitlements, and any conditions or restrictions on distributions.
- Tax Implications: Trusts can have complex tax implications, including Inheritance Tax, Capital Gains Tax, and Income Tax. It is vital to seek professional tax advice to ensure the trust is structured in a tax-efficient manner.
- Regular Review: Circumstances change, and it’s essential to review your Bloodline Will and trust arrangements periodically to ensure they still reflect your wishes and address any new challenges or opportunities.
Professional Legal Advice is Essential
Bloodline Wills and trusts are complex legal instruments.
Creating one requires careful planning and expert legal guidance. At Blackstone Solicitors, we have extensive experience in drafting Bloodline Wills and setting up trusts for clients across England and Wales. We can help you navigate the complexities of inheritance planning and create a plan that meets your specific needs and objectives. Contact us today for a consultation to discuss your estate planning requirements. We are here to help you secure your children’s future.
We have a proven track-record of advising upon all aspects of private client work. We will guide you through the process and ensure all checks are carried out swiftly and efficiently and we firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.to incorporate, what kind of ownership
How to Contact Our Private Client Solicitors
It is important for you to be well informed about the issues and possible implications of setting up a Trust. However, expert legal support is crucial in terms of ensuring a positive outcome to your case.
To speak to us today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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