Beneficiary Protection Trusts
Protecting Family Wealth Across Generations
A Beneficiary Protection Trust (BPT) is a legal framework that helps ensure your inheritance stays within the family — protected from:
- Divorce or remarriage
- Unnecessary inheritance tax
- Care fees and third-party claims
🔹 What’s the Problem with a Simple Will?
Many Wills leave everything to a spouse, then the children. While this seems sensible, it can create long-term risks:
- Remarriage – Assets may pass to a new partner
- Divorce – A child’s inheritance could go to an ex-spouse
- Inheritance tax – Wealth is often taxed multiple times
- Care fees – Assets can be assessed if your spouse needs care
🔹 How a Beneficiary Protection Trust Helps
We use a tailored combination of Wills and trusts to protect your legacy at each stage:
🪦 On First Death:
- Your assets pass into a Life Interest Trust — your spouse is supported, but capital is protected
- We may also use a Nil Rate Band Discretionary Trust to reduce future IHT
- Planning is structured to protect the Residence Nil Rate Band (RNRB) for your children
👥 On Second Death:
Each child inherits via a Beneficiary Protection Trust, which:
- Shields wealth from divorce, creditors, care costs, and remarriage
- Allows flexible, tax-efficient access (e.g. loans or distributions)
- Protects the inheritance for grandchildren and beyond
These trusts can last up to 125 years, securing your family’s wealth for generations.
🔹 Key Benefits
✅ Keeps wealth in the bloodline
✅ Reduces current and future IHT
✅ Protects against third-party claims
✅ Offers flexible use of funds for your children
✅ Fully tailored to your family’s needs
💷 What Does It Cost — and Is It Worth It?
If your estate is worth £1 million or more, this planning could save hundreds of thousands in tax — while ensuring your legacy is passed on safely.
From £4,488 (incl. VAT) for a legal partnership. Also for single persons and cohabitating partners,
👉 Want to find out if this applies to your situation?
📅 [Book Your Discovery Meeting]
Protective Gifting Trust
Lifetime Gifting — On Your Terms, With Lasting Protection
Helping your children or grandchildren while you're still here to see the difference — that’s what many clients tell us matters most.
A Protective Gifting Trust (PGT) allows you to gift now, without losing control — and with serious long-term tax advantages.
🔹 Why Consider Lifetime Gifting?
✅ Support your loved ones when it counts
Whether it’s a house deposit, school fees, or a new business — your gift can make a difference when it’s needed most.
✅ Save up to 40% in inheritance tax (IHT)
Gifts made during your lifetime can fall outside your estate after seven years — reducing your taxable estate significantly.
✅ Create impact earlier
A £50,000 gift at age 35 can change a life. The same gift at age 65 may simply pad a pension.
⚠️ The Risks of Gifting Without a Trust
Gifting directly (e.g. to a child’s bank account) might feel simple — but it opens up risks:
- ❌ Loss of control — The money may not be used how you intended
- ❌ Divorce or disputes — Inheritance could be lost in a divorce settlement
- ❌ Bankruptcy — Creditors may access gifted funds
- ❌ Double taxation — The gift may be taxed again in your child’s estate
- ❌ Capital Gains Tax (CGT) — Direct gifts of property or shares could trigger a CGT bill
🔐 How a Protective Gifting Trust Works
A PGT is a living trust, created during your lifetime. You gift into the trust — but retain flexibility and protection.
✅ You stay in control
You choose the trustees. You set the guidance. You decide how and when funds are used.
✅ Shield gifts from third-party claims
Assets in the trust are typically excluded from divorce or bankruptcy proceedings.
✅ Defer Capital Gains Tax
Eligible gifts (like property or shares) can qualify for holdover relief, delaying CGT until a future sale.
✅ Prevent IHT in your child’s estate
Distributions can be made as loans — repaid before IHT is calculated, protecting family wealth from second-generation tax.
✅ Lasts up to 125 years
Protects wealth for children, grandchildren, and even great-grandchildren.
💷 Cost vs Value
Example:
Gift £300,000 into trust → Potential IHT saving of £120,000
Typical cost: From £2,544 (incl. VAT) for joint settlors. Also for single settlors.
That’s significant protection — for a fraction of the value at risk.
“We always focus on the value you’re preserving, not just the legal cost.”
⚠️ Things to Consider
- Gifts into a PGT are Chargeable Lifetime Transfers (CLTs) and use part of your £325,000 nil rate band
- Periodic and exit charges may apply — but are often far less than 40% IHT
- Multiple trusts can be used over time to manage larger gifts efficiently
👉 Is a PGT right for your family?
We’ll walk you through your options in plain English and help you understand how this fits into your wider estate plan.
📅 [Book a no-obligation Discovery Meeting]
Register Powers of Attorney
Stay in Control — Even if Life Takes an Unexpected Turn
An illness, accident, or diagnosis can strike at any time — leaving you unable to manage your own affairs.
Putting Lasting Powers of Attorney (LPAs) in place now ensures your loved ones can step in legally, quickly, and in line with your wishes.
🔐 Financial Power of Attorney
(Property & Financial Affairs LPA)
This allows someone you trust to handle your financial and property affairs if you're no longer able to do so yourself.
What it covers:
- Managing bank accounts and paying bills
- Collecting pensions, benefits, and income
- Buying, selling, or maintaining property
- Dealing with financial institutions and HMRC
Why it matters:
Without this, your loved ones may have to apply to the Court of Protection — a slow, expensive, and stressful process.
❤️ Health & Welfare Power of Attorney
(Health & Care Decisions LPA)
This gives someone legal authority to make personal and medical decisions on your behalf, if you lose mental capacity.
What it covers:
- Where you live and who provides your care
- Medical treatments and procedures
- Life-sustaining treatment decisions
Why it matters:
It ensures that your care reflects your wishes and values — and that decisions are made by someone who truly knows and respects you.
✅ Peace of Mind — For You and Your Family
Having both LPAs in place means:
- You stay in control — even if you lose capacity
- Your loved ones can act without legal delays or barriers
- Decisions are made quickly, compassionately, and in your best interests
👉 Need help setting up your LPAs?
We’ll guide you through the process with clarity, compassion, and fixed-fee pricing.
📅 [Book a Discovery Meeting] or [Get in Touch]
Other Services to Complete Your Planning
A quick overview of the additional estate planning tools we offer — all designed to help you protect wealth, reduce tax, and stay in control.
🏠 Protecting the Family Home & Property
- Nil Rate Band (NRB) Planning
Directs allowances into trust to reduce inheritance tax on second death.
- Life Interest Trusts
Ensures a spouse or partner can remain in the home while protecting capital for children.
- Tenants in Common & Deeds of Severance
Change ownership structure to support trust and tax planning.
🧾 Wills & Letters of Wishes
- Updated Wills
Reflect new assets, beneficiaries, or trust structures as life changes.
- Letters of Wishes
Guide your trustees with non-binding instructions about your preferences.
- Standalone Wills
A basic option where full planning isn’t yet required.
💼 Business & Agricultural Relief Planning
- Business Property Trusts
Pass on qualifying assets tax-free and preserve reliefs.
- Tailored for One or Both Partners
Flexible for partnerships, families, and business owners.
📂 Trust Services & Ongoing Support
- Trust Registration (TRS)
We register your trust and provide 24-month ongoing compliance support.
- Deeds for Trustees, Beneficiaries & Assignments
Make future updates to your trust structure easily.
- Secure Document Storage
Keep your signed Wills, Trusts, and LPAs safely stored for 8 years.
💰 Gifts, Loans & Life Policy Planning
- Loan Agreements & Assignments
Formalise past or future loans to beneficiaries with legal backing.
- Assurance Trusts
Ensure life insurance pay-outs are protected and kept out of your taxable estate.
- Investment Bond Gifting Trusts (MBTs)
Ideal for passing on investment bonds while retaining flexibility.
⚰️ Post-Death Planning & Fulfilment
- Deeds of Variation
Rework an inheritance after death to improve tax outcomes or add trusts.
- Trust Fulfilment Services
Help with transferring assets (including property) into trust after death.
- Probate Support
We can connect you to trusted probate providers for estate administration.
- Trust Closures & Appointments
Close unused pilot trusts or make final capital distributions when appropriate.
Need a Personalised Recommendation?
All of our services are offered with clear, practical advice. If you're not sure which options apply to your situation, we’re happy to help you map out the right strategy.
👉 Contact Us for a no-obligation conversation.