As a parent, it is only natural to take steps to ensure your children inherit the full value of your estate. The Will Associates recommend creating a Trust that will help protect your assets as this will not only protect them during your lifetime, but it will continue to work after your death.
Once you have taken the important decision to protect your family's inheritance through a Trust, you have to decide who you want to administer your wishes through the appointment of Trustees.
The role of a Trustee is crucial in the working of the Trust and they can be different to the named beneficiaries. A very useful feature of the Trust is that it can remain in force after the death of the Settlor (the person who initially opened the Trust).
The use of Trusts is especially important for those families who are affected by drugs or alcohol addictions.
Some interesting statistics for addiction for the North East of England are:
• In 2014 the North East had the highest mortality rates in England. This was the second year running it had come top, with 69.3 deaths per million population.
• The mortality rate is double that of London.
• Regions within the North East have had the had the highest mortality rate for the last 9 years.
Drug use within the North East is an ever growing concern, especially if you have children that are addicted to drugs or alcohol. It would be natural to worry about leaving them your estate on your death. That sudden increase in wealth could send them spiralling down into a self-destructive binge. Is this what you would want to happen to your child?
You may have spent years supporting your child, helping them fight their addiction and may even have successfully helped them rehabilitate, however, there is always a life-long risk of a relapse. The stress of losing a loved one, for instance, may start that self-destructive behaviour again. An inheritance of any kind could then fuel that behaviour undoing years of hard work.