Using a Trust to protect assets from coercive partners.

Many people worry about how their beneficiaries will deal with their inheritance when the time comes. Parents especially will know only too well the weaknesses of their children. In this case the Settlor, our client, had concerns about their daughter’s vulnerability to coercive and controlling behaviour.

Based on previous poor choices in relationships they feared that any inheritance would become a target for unscrupulous partners if she were to receive a large sum of money or own a property of her own.

They also wanted to make some provision for their other children while ensuring the vulnerable daughter was protected. After carrying out a full consultation, we advised them to place the family home into an APT, Asset Protection Trust. The property could then be made available for the vulnerable daughter to live in, in return for a reasonable rental payment, and the rental from the property was directed to her siblings, for use in maintaining the Trust property and for supporting their sister. Our clients wanted to add a restriction into the trust to direct that, if the daughter wished to co-habit in the future, that she vacate the trust property and it be rented out privately instead, still providing an income for the trust.

Although this hasn’t happened yet the directions of the Settlors mean that she will always have a home to return to ad protect the trust from any coercive relationships.