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Case Study – Legal Partnership
Situation
Ravi and Helen are married and have one daughter, Avani. Their estate is relatively modest, with their primary asset being their jointly owned home. Their current Wills leave everything to each other and then to Avani.
Concerns
If one of them were to pass away, they want to ensure that the surviving spouse can continue with the same standard of living they enjoyed together. However, as they are both relatively young, remarriage in the future is a possibility. They have witnessed situations where children have been disinherited in these circumstances.
They have seen situations where, after remarriage, children from the original relationship were unintentionally disinherited. They want to ensure Avani’s inheritance remains protected regardless of future circumstances.
Solution: Solidus Beneficiary Protection Plan
A Solidus Beneficiary Protection Plan would provide Ravi and Helen with new Wills that incorporate a flexible Trust arrangement on the first death.
Flexible Access for the Surviving Spouse
The Trust allows the surviving spouse to continue benefiting from the assets if required. Trustees can make funds available to support their lifestyle, ensuring financial security while maintaining protection over the underlying assets.
Protection from Third-Party Claims
Because the assets are held within the Trust structure, they can be ring-fenced from potential third-party claims against the surviving spouse’s estate, such as those that may arise from remarriage or financial disputes. This helps ensure that the intended family beneficiaries remain protected.
Preserving the Family Legacy
On the death of the surviving spouse, the remaining estate would pass into a Discretionary Trust for Avani and her descendants. This structure helps ensure the family’s wealth is preserved and distributed according to the family’s wishes.
Generational Inheritance Tax Planning
By directing the remaining estate into a Discretionary Trust, the structure may also help mitigate the risk of assets becoming part of Avani’s taxable estate in the future, potentially reducing inheritance tax exposure for the next generation.
