The IOU Discretionary Will Trust (IOU DWT) that is taken on first death from the surviving spouse instantly creates an interest in the property. If a Local Authority are looking to take a further Charge on this property to pay for the long-term care costs of the survivor, they will be unable to. Please also remember that the Discretionary Will Trust created on first death ring fences assets of up to the Nil Rate Band and does not allow these to be taken by Local Authorities if they are looking to recover costs for long term care, on second death.

Benefits of the Asset Protection Plan

The first Trust (IOU) protects assets for spouse and future generations (long term care element). The second Trust (on second death) ring fences both nil rate bands allowing the inheritors the flexibility of passing this amount onto their own children and Grandchildren through the Trust rather than via their own estate.

• Holds Assets in Trust for the beneficiaries
• Children have autonomy and discretion over the Trust funds
• Grandparents leave a lasting legacy in Trust for the Grandchildren
• Grandparents finance the future hopes, wants and aspirations for the grandchildren

Funds can be used for purposes such as:

• General spending and out of pocket expenses
• School, College, University fees
• Travel
• Deposit or outright purchase of private dwelling
• Furnishing of private dwelling
• Purchase a car
• Pay for engagement / Wedding
• Invest for income or growth, or both
• Holidays / "gap year" funds
• Loans
• Repay student "debts"
• No need for further loans / credit
• Enable financial planning for the grandchildren

The Asset Protection Plan will give maximum flexibility for both long-term care costs and future Inheritance Tax planning.