An APT, Asset Protection Trust, is a lifetime Trust. This means that the Settlor, the person setting up the Trust, places their assets in Trust while they are still alive. Life will continue as normal, with the Settlor safe in the knowledge that, after their death, their Estate is protected for future generations.
In this case our client had set up their APT with us several years ago, making their home an asset of the Trust. Later, as our client neared the end of their life they sadly had to move permanently into care. With the property no longer required for occupation by the Settlor we were able, as Trustees, to sell it from within the Trust. The proceeds from the sale were then retained in the Trust, for use by the Settlor if the need arose but ultimately safe for our clients’ beneficiaries.
As Trustees we have a duty to maximise the funds held in the Trust and set up a suitable investment. Shortly after this particular investment plan had been enacted our client sadly passed away. We discussed the options with their beneficiaries, who all agreed to allow the investment to run to term. When the investment matured the Trust fund was worth more than the original inheritance, providing further benefit to the beneficiaries.
Half the beneficiaries received their share as a lump sum, while the other half, who are on benefits, have had their shares protected by keeping them in the Trust. We are able to make regular payments which benefit them, without risking their benefits and thus maximising their inheritance.
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