Beneficiary Protection Plan

The Beneficiary Protection Plan(BPP) is a purpose designed framework to collect the benefits of a Will, or gifts made during a lifetime, and protect them for your loved ones.

The benefits of a BPP are:-

  • Provides a framework for next generation tax benefits – potentially saving 40% Inheritance Tax for your grandchildren and beyond
  • Allows the benefits to remain in the trust for someone to control, rather than being paid out to irresponsible or immature family members
  • Reduces the impact of assets of the trust from social impacts and third party claims – such as a future ex-spouse of one of your children or creditor via bankruptcy
  • Provides flexibility to trustees on how and when benefits are released to protect individuals from being spoilt
  • Allows for lifetime gifting to your family whilst protecting your gift from becoming part of a divorce settlement, for example, in the future

 

The BPP may be called other names such as a Pilot Trust or Discretionary Trust, we see it as a Family Trust. The key thing is that on your demise, or before if you so wish, important assets such as property or investments can be ring-fenced, so that future generations can benefit without taking full ownership.

Final BPP Infographic