Provided that a divorce is not already anticipated when you inherit from a Will or under the Law of Intestacy, you can voluntarily protect your inheritance against such a future threat.
The exact same opportunity also exists in relation to future care fees assessment, vulnerability due to loss of mental capacity, or any other third-party claim against your assets. The quality of any care would not be compromised as a result.
Although the technical term is holding your inheritance as a “Trust” fund, you will not lose any control or enjoyment of your windfall, and the legal and administrative costs you will incur to protect it would usually be below £1,000.00. Thereafter, any future remaining value of what you have inherited from a Will or under the Law of Intestacy shall be secure from unwarranted future claims against your assets.
Unfortunately, the majority of beneficiaries under the terms of a Will or an estate, elect to receive their inheritance directly. Thus, what they receive immediately becomes theirs absolutely. It is then automatically exposed to future divorce settlements, care fees assessment, vulnerability due to failing mental capacity or other third-party claims.
However, those same beneficiaries have up to 2 years, after the death of the person from whom they have inherited, to elect to “vary” the terms of that inheritance as if the deceased has already protected the gift against third-party claims in their Will before they died.
You can read more about this on our Trusts page here.
TRF Wills (TRF) was created by Michael Cotterill in 2005. He is a member of the Society of Will Writers and registered with the Information Commissioner’s Office.