Asset Allocation Trust
Asset Allocation Trust
The Asset Allocation Trust is also known as a Lifetime/Living Trust.
This simply means that the trust is created in your lifetime as opposed to after your death.
It is a lot like a Will. You set out your wishes about your asset and your heirs.
The AAT is specific in that the asset that is allocated to your trust is your main residential property. You still require a Will which deals with the rest of your estate.
You will appoint Trustees to manage the trust. This will normally include yourself so that you retain control. You will name your Beneficiaries, and this will also include yourself so that you retain the right to live in the property during your lifetime.
The AAT bypasses the time-consuming process of probate. The Trustees don’t have to wait to carry out your instructions upon your death – they can do it immediately.
You place your asset into an AAT to make sure your beneficiaries receive the asset at a time that’s right for you and for them.
You have complete control – you decide on what the trustees can and cannot do.
The AAT protects the asset for your children in the event of re-marriage and from other third party scenarios.
Responsible Estate Planning is not about evasion.
It is all about Protection
If your only concern is how to direct your legacy, then a simple Will is what you need.
However, if you wish to protect as much of your legacy as possible to ensure that it passes to your family, then the use of Trusts, whether it be a ‘Will Trust” or an ‘AAT’ is a must.
Protect your assets now so that your loved ones will be certain to benefit.