Bloodline Wills & Trusts
Making sure that you write a legally valid will before you pass away is important as it allows you to put plans in place to protect your assets and your loved ones when you’re no longer around.
Within your will, you can arrange your funeral and organise a way of paying for it, nominate an executor (the person who will manage the probate process and administer the will), set up trusts and guardianship orders, and ensure that your estate (including your money, family house, businesses and any other possessions) is divided in a way that represents your final wishes.
Dying without a will (dying intestate) means that your estate is likely to be distributed without consideration of your preferences, which could lead to family disputes and your assets could end up in the hands of the wrong people.
Writing a basic will yourself rarely provides an adequate level of protection if it has not been done with a high degree of diligence. Even if you have written a basic will, you might still find that certain issues could arise that may put your children’s or grandchildren’s inheritance in jeopardy, which is why it’s so important to take all the necessary precautions and get a legal, professional will-writing service to do all the work for you.
Bloodline wills are useful in that they ensure that your assets are kept in the family, rather than ending up in the hands of a third party, such as one of your children’s ex-partners. Many people use them as a way of protecting their inheritance from a son-in-law or daughter-in-law, or any other third party outside of their family.
Here is our guide to bloodline wills, including what they consist of, when you might need to write one, and how you can set yours up today.
What is a bloodline will?
The main difference between a standard will and a bloodline will is that the latter includes a special type of trust which guarantees that the assets within it are only ever accessible to your direct descendants.
The beneficiaries are your children and grandchildren (and perhaps their descendants down the line), which is why people opt for this type of will as a way of protecting their legacy and the family’s inheritance.
Simply leaving everything you own to your children in a basic will is unlikely to provide a sufficient level of protection, and there are several risks or complications that could arise. For example, your daughter could divorce from her husband and he could end up taking a portion of the assets you left her.
Your estate may go to your children initially, but that doesn’t always mean that it will be kept safely within the family. The only way to guarantee that your legacy remains part of your family’s inheritance over a long-term period is to set up a special trust within a will.
What is a bloodline trust?
While some people may think that trusts are only useful to avoid their inheritance tax bill, they can also be used to protect parts of your estate when you (and perhaps even your children) are no longer around.
A bloodline trust – sometimes referred to as a family protection trust – is a type of trust that is tailored to ensure that your assets are kept in the family.
The bloodline trust property (the contents) can include things like money or investments, similarly to other trusts, but its key feature is that the assets within it can only be inherited by descendants of the testator (the person who wrote the will).
The beneficiaries must be your children, their children, or other direct descendants, and the property can only be used for purposes related to their health, education, maintenance and/or support.
Many fail to see the benefits that a bloodline trust offers, but there’s no doubting that the protection it provides against third parties could help get your loved ones out of a tricky situation one day.
You may not feel an urgent need for such protection at this moment in time, but we strongly advise that you consider putting a bloodline trust within your will as a way of future-proofing the inheritance that you pass down to your children and their children thereafter – after all, you never know how things will turn out.
When to set up a bloodline trust in the UK
Over half of British marriages now end in divorce and complicated family situations are becoming increasingly common, so it’s always worth putting plans in place to protect your descendants as you never know what may happen.
Most people set up a bloodline will to protect the belongings that they plan on passing down to their children and grandchildren against third parties, such as ex-partners or in-laws.
Putting a plan in place doesn’t mean that you have trust issues, it is simply a safety net for your children or grandchildren to fall back on if ever they need it in the future. And if it happens that they do need it one day, they’ll certainly be thankful that you prepared for all eventualities.
Protecting your inheritance from sons- and daughters-in-law is particularly important if:
The marriage seems unlikely to last.
They have previously struggled to find or keep a job and are in an insecure position.
Your children or grandchildren have been abused or mistreated by them.
They suffer from addiction (including drug use, alcoholism, or even gambling).
They were married or have children with someone else.
You are aware or have suspicions of them being unfaithful.
They have been in debt or show signs of money troubles.
Every situation is different, which is why we are proud to offer a tailored will-writing service that is able to cater to your specific needs, and we will always be upfront with you and let you know whether we feel that certain trusts would benefit you or not. For a free, no-obligation discussion about your options or for more bloodline planning advice, be sure to get in touch and we will be happy to help you.
Passing away without a bloodline trust
If you die without a will, your estate will not be distributed in line with your wishes, which could lead to all sorts of distress, including family disputes, your children having to cover the cost of your funeral, and your estate potentially being handed over to the Crown.
So firstly, you must have some sort of legally binding will in place, but it’s also crucial that it covers all bases.
As the testator, you will never see the benefits of a bloodline will, but you will get peace of mind knowing for certain that your assets will be kept in the family when you’re no longer around, regardless of what happens.
If you don’t set up a bloodline trust, your belongings could end up in the hands of the wrong people, including third parties outside of your family, such as your sons- and daughters-in-law, your children’s step-parents, someone else’s children or grandchildren, the government, or your local authority.
Bloodline trust examples
To help you get a better understanding of how they work in real-life stations, here’s an example of a bloodline trust being used:
Anthony and Deborah have a child, Lisa, and they decide to set up a bloodline trust through Quick Wills to protect the family inheritance that will be left to her when they pass away. Lisa is married to Justin, who has a history of debt and often struggles to hold down a job. Over a decade later, when both Anthony and Deborah have passed away, Lisa files for divorce. Due to his debt issues, Justin tries to use the divorce as a way of getting hold of the inheritance he knows Lisa’s parents left to her, which is a substantial sum of money. During the divorce, Lisa is temporarily replaced as the trustee of the bloodline trust by her older sister, but is reinstated once legal proceedings have been dealt with. Thanks to the trust her parents set up, Lisa’s inheritance was protected from her ex-partner and it was kept safely in the family.
While the situation you’re in right now may seem secure, it’s crucial that you plan ahead and prepare for all eventualities by using a bloodline will. To get started, register with us at Quick Wills today or get in touch by completing our short contact form for more information.
The key advantages and disadvantages of bloodline trusts
In a nutshell, the main benefit of a bloodline trust is that it is a helpful safety net that protects the inheritance you pass down to your children and grandchildren from third parties.
Other benefits include:
The trust property is safe and can only be accessed by your descendants.
Your loved ones will have a safety net to fall back on if someone tries to take the inheritance from them.
You have peace of mind, knowing that your family and their inheritance are protected.
The trust guarantees that your assets will be used to benefit the blood relatives named in your will.
Third parties are not permitted to access the trust property.
You can revoke the trust at any time if you choose to do so (but no one else can).
The trust ends when your child passes away, but the funds are only able to be inherited by their descendants.
The potential disadvantages of bloodline trusts are minimal, but how you view them will depend on your situation, as it won’t suit all types of people (those with no children or grandchildren, for example).
Some might find reassurance in the trust’s strict terms, while others may see the fact that the funds within can only be used for health, education, maintenance and support as a negative restriction. These people may be better suited to a different type of will with fewer constraints.
How much does a bloodline will cost?
The cost of making a will varies from person to person and it depends on a few factors, including the value of the estate in question, how complex the will is, and whether or not it includes any trusts (such as a bloodline trust).
How much does it cost to set up a bloodline will?
Generally, bloodline Wills cost more than standard basic wills (on average, at least), due to the additional service required to ensure that the trust is set up accurately and in a way that will protect your family and estate for many years to come.
Again, the cost depends on your individual situation, so you will need to register or contact us for more information based on your specific needs.
How to set up a bloodline trust
Setting up a bloodline will with a trust is the best way to keep the inheritance you plan on leaving to your children and grandchildren in the family, and to give yourself peace of mind while doing so.
It is possible to do things independently by using a will template, but people soon find out that knowing what to include in a will is just the start. The majority of people that try to make a will themselves, especially one including a bloodline trust, often incur problems when doing so, particularly when it comes to the legal wording and technicalities involved.
One mistake can be costly in our line of work, which is why it’s best to leave things to the experienced will-writing professionals.
Here at Quick Wills, we can take care of everything for you with professionalism and a guaranteed level of protection, so be sure to get in touch to get your family protection plan started today by creating your bloodline will.