The Succession Trust Frequently Asked Questions Make A Simple Calculation Apply For A Succession Trust

Make a Simple Calculation

If you would like to make a simple calculation to see how much you can protect for your chosen Beneficiaries by setting up a Succession Trust please complete the simple calculator below. The figures are only for guidance and are not retained for any purpose.

Date:    
Number of People:    
Person 1
Age:    
Sex:    
Person 2
Age:    
Sex:    
Finance 
Value Of Home    
Cash in Bank    
Value Of Other Assets    


The Working of The Succession Trust Simple Calculator

According to the UK Government’s Office of National Statistics (ONS) 2010 the average life expectancy of UK resident is 83 years for women and 78 years for men. We therefore deduct the current age entered into the simple calculator from the average life expectancy and use the figure produced to calculate the length of time that a Trust will need to be managed and supported.

If there is one Succession Trust to be established we use the cost figure of £2,600, and £20 per calendar month (pcm) for the legal requirement of managing and supporting the person who requested The Succession Trust (The Settlor). If there is a second Succession Trust to be established simultaneously by a spouse we use the cost of establishing a second Succession Trust at a discounted rate of £1,350 and only charge £15 pcm for management and support. Should one of these Succession Trusts require dispersing we will default to the lower figure of £15 pcm for managing and supporting the ongoing legal requirements for the remaining Succession Trust.

Once a Succession Trust is established the total value held within this Trust does not require processing through Probate; typically banks and solicitors charge 3% - 5% fee. For our simple calculator we are using an average of 3% therefore allowing a further 3% of the total amount in the trust to be dispersed to your Beneficiaries immediately upon one’s death.

Should the situation arise that someone who has a Succession Trust requires care home there is a possibility that the value of their Estate would not be considered in the Local Authorities financial assessment.

Published statistics vary for the average length of care home stay in the UK. The Personal Social Services Research Unit (PSSRU) at the University of Kent at Canterbury Discussion Paper 2769 commissioned by BUPA indicates that in BUPA care homes the average length of stay was 801 days, approximately 26 months, whilst a survey published by Saga recently estimated that the average stay of a person in a care home is four years. For this simple calculator we use an average of 36 months.

AAP Trustees own research in South Cheshire 2012 indicates that the average cost of care home stay is approximately £33,000 per annum (pa) or £2,750 pcm. In this simple calculator we multiply the number of estimated months that one may stay in a care home (36) by the monthly cost (£2,750) and deduct this to provide one with a possible amount that one’s Estate may be devalued by in order to pay for care home stay. The cost of care home stay does vary from region to region. A recent article published in the Telegraph News Paper indicated that many care homes in the South of England cost close to £50,000 pa.

Currently the amount of one’s Estate exempt from Local Authority assessment, should one require care home services, is £23,500 per person. This amount is therefore subtracted from the total value of one’s Estate. This is then reflected in the subsequent calculation for the total amount that can possibly be assessed by the Local Authority.

The summary figures reflect the value of one’s Estate minus the possible amount absorbed by the Local Authority to pay for care home stay without a Succession Trust and, thereafter, the value of one’s Estate left to one’s Beneficiaries with a Succession Trust.

Should you require further information please feel free to contact us using the online facilities click here or call and speak with one of our Trust advisors on (01270) 613852.

 
 



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