When you place assets into an APT, you transfer the legal ownership of those assets to trustees, while you (or others) retain the right to benefit from them. This separation means your assets are not counted as part of your estate, potentially protecting them from claims, taxes, or other risks.

Securing your family’s future is critical, and an APT can shield your wealth from potential threats like:

• Care Home Fees: Although you cannot place your assets in trust the with the intention of avoiding care fees, in some cases trust assets will be protected from care fee assessment.
• Spouse Remarriage: If your spouse remarries, assets could end up with their new partner, not your children.
• Debt and Bankruptcy: If your spouse or children face financial difficulties, assets placed in a trust may be protected.
• Will Contests: Protect your estate from potential disputes by making sure it’s legally secure and distributed as intended.

• Avoid Probate: Assets in the trust bypass probate, saving time and money in the distribution process.
• Control: You can set specific guidelines for how and when assets are distributed, ensuring they go to the right people.
• Tax Benefits: A trust can help mitigate inheritance tax liabilities if managed properly.
• Care Fees Protection: If set up correctly, assets in the trust may not be counted towards care fees assessments.

• While an APT has many advantages, it’s not without risks:
  • High Costs: Setting up and maintaining a trust can be expensive, often costing thousands of pounds in legal fees.
  • Access Limitations: Once assets are in the trust, you can’t freely access them without trustee approval.
  • Potential Legal Challenges: If the trust appears to be set up primarily to avoid care fees or creditors, it could be challenged by authorities.

An APT is suitable for anyone looking to protect significant assets from family disputes. It’s especially helpful for those with property, high-value assets, or complex estates.

• Property: The most common asset, including shares of jointly owned homes.
• Investments: Stocks, bonds, or savings that exceed the threshold for means-testing.
• Cash: Any capital that exceeds £14,250 may be worth placing in a trust.

However, be mindful of assets that could trigger tax penalties, like those subject to capital gains tax or the inheritance tax “nil-rate band” limit (£325,000).

Yes, in theory. Since assets in the trust are legally separate from your estate, they might not count towards the means-testing for long-term care fees. However, if the authorities believe the trust was set up with the sole purpose of avoiding care fees, they could challenge it.

Setting up a trust typically costs between £3,000 and £6,000 for legal fees, and there may be additional fees for transferring assets into the trust. While this can be a significant investment, it’s worth considering if you have substantial assets to protect.

Yes, you can modify the trust at any time, moving assets in or out, or adjusting the beneficiaries. However, there may be costs involved when making changes.