THE ASSET PRESERVATION TRUSTTM
The asset preservation trust is written as a spousal by pass trust with an assignment deed. The assignment deed can link any of the following to the trust:		The Trust Drafting ProcessTM Frequently Asked Questions Application form

• Personal Pensions
  
• Additional Contribution Schemes
  
• Freestanding Additional Contribution Schemes
  
• Small Self-Administered Schemes
  
• Self Invested Personal Pensions
  
• Funded Unapproved Retirement Benefits Schemes
  
• Death in Service Benefits

The Asset Preservation Trust will therefore save the Inheritance Tax that would have been payable if the assets were paid to a spouse, and held in their estate ‘till death. The Trust can also provide capital or income to your spouse in the form of a loan. This loan creates a debt on her estate, thus avoiding Inheritance Tax.

A further benefit is that should your spouse require long term care, the value of the trust will not be included within the estate for local authority benefit calculations.

The trust also protects the assets from re-marriage of the surviving spouse. This means that the surviving spouse can receive in come from the trust, as well as capital without the value of the trust falling their estate, thus protecting the funds within the trust from the re-marriage, and even subsequent divorce of the surviving spouse. In addition to this the assets can remain in the trust for up to 80 years (21 years after the death of the Settlor – in Scotland), thus providing the same protection for the clients children and grand children.

Finally, the Trust provides protection against creditors to the estate.