Protecting funds for the future 

Following our Clinical Negligence team successfully acting for Mr S in two separate negligence claims, where he received £775,000 in compensation, we visited Mr and Mrs S in their home to discuss how best to protect these funds for the future. Following that discussion we drafted:-

  • A PI Trust to hold his compensation monies so that these funds could not be included in any means tested state benefit, such as care home fees. Two of his daughters were to be appointed as trustees. On choosing his trustees, Mr S was advised he needed to choose trustees who he trusted implicitly and were also financially astute.
  • New Wills for both Mr and Mrs S incorporating trusts and updating their executors, as their original appointed executor had predeceased them. The trusts in the Wills ensured that the Wills were inheritance tax efficient, but that assets would not form part of the estate of the survivor of them for means tested care. The trusts also ensured that the survivor would have the trustees to deal with the administration of the estate and the ongoing trusts.
  • Lasting Powers of Attorney documents;

These documents covered Mr and Mrs S’ property and financial affairs and protected against the risk of them losing mental capacity. Not having an LPA in place results in an appropriate person having to make an application to the Court of Protection to be appointed as “Deputy” to deal with the financial affairs. This ultimately saved them time and money, as an application to the Court of Protection takes, on average, six months to complete. Further, the costs involved are in excess incurred making a Lasting Power of Attorney.

  • Wealth Preservation Trust to hold his family home. Two of his daughters were to be appointed as the trustees with the beneficiaries being Mr S’ wife and children. This allowed Mr S to know that if anything happened to him the property would be looked after by his trustees on behalf of Mrs S, which would make life easier for her. It also meant that he knew exactly what would happen to the property after his death.

Sadly, Mr S passed away a few months after we completed the work.

Due to the estate planning we put in place for Mr S during his lifetime, the administration of his estate was straight forward for his executors and trustees and enabled the probate process to be completed efficiently.

We have now carried out further inheritance tax planning for Mrs S, alongside a financial advisor, which has mitigated the inheritance tax that could be payable on death of Mrs S and has enabled Mrs S to feel comfortable with making gifts during her lifetime.

To find out how our team can help you with a similar situation, do not hesitate to contact us using the form above. 

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