Children’s Protective
Trust
A summary of your options:
If you have
children, we recommend that you consider a Children’s Protective Trust be drawn
up within your Will. This also includes
a separate letter of wishes so that you can give guidance to the trustees regarding
how it should operate. There is an
additional charge for this option as it does involve additional legal work and
many people don’t require this as their children are grown up or they do not
have children.
With a Children’s Protective Trust
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Without a Children’s Protective Trust
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The Trust would be set up as part of probate.
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A Trust would still be set up as part of probate.
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You can appoint the trustees according to your wishes and judgement.
This can stop an unreliable or untrustworthy former partner from
taking control of the assets.
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Trustees will be appointed by the court; they may not be the people
you would choose.
It is likely that the legal guardian will take control of the
funds. This could be a previous partner
or other person you may not want.
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You can specify the age that the child receives and has full control
of their inheritance.
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You can still specify the age that the child
receives and has full control of their inheritance.
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The trustees have discretion to use the funds prior to the age
specified in the best interests of the child.
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If the court specifies, the inheritance can be used prior to the age
specified - but this is not guaranteed and is not guided by your wishes.
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The trustees can at their discretion release funds between the ages
of 18 and the age specified when the child receives full control of their
inheritance.
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The monies would be ‘locked away’ between 18 and the specified age as
there would no longer be a legal guardian.
Access to money is not necessarily impossible but would require legal
work and possibly court involvement. This could prove costly.
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The trustees have freedom to act within the terms of the trust,
without reference to the court.
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The trustees can only act as authorised by the court.
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You can give guidance to the trustees via a letter of wishes.
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The testator cannot give guidance to the trustees via a letter of
wishes.
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The trustees have flexibility to delay an inheritance if the child is
at risk of losing the inheritance due to addiction, impending divorce or
impending bankruptcy, etc.
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There is no such flexibility.
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The Trustees can delay an inheritance, so that the child can claim state
benefits or, for instance, to ensure that they get the maximum possible
Student Loan.
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The inheritance cannot be delayed for these purposes.
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Your wishes are clear making disputes less likely and costs lower.
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Costs could be higher and disputes more likely.
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Note: This is for guidance only. Please speak to your advisor or the legal
team at Goodwills Legal services ltd for a more detailed explanation.