How Pre and Post-Nuptial Agreements Can Help Protect Family Wealth
With the significant inheritance tax changes announced in the last Budget, many are now turning to lifetime gifting as a solution to mitigating IHT liability.
What is a pre-nup? A pre-nup is an agreement made between two individuals before their marriage has taken place. It usually sets out how the couple would like to divide their property, and other assets should they later separate or divorce. Alternatively, a post-nuptial agreement is made between individuals who are already married and sets out exactly the same as a pre-nup. But a post-nup can be really effective when there is a significant change in one or both parties’ financial circumstances during the marriage. It’s worth noting here too that those contemplating a civil partnership can also enter into pre and post nuptial agreements and they operate in exactly the same way. Both pre-nup and post-nup agreements can ring-fence and protect specific assets from being divided in divorce, including:
From a tax planning perspective, lifetime gifting to pass on assets can be beneficial.
But how do you make sure these assets are protected in the event of divorce? We asked Matt Clemence, Head of the Family Team at Kerseys Solicitors to set out the basis of pre and post nuptial agreements and how they can be used to protect assets.
Pre-Marital assets : Anything owned by one person before the marriage, such as property, savings and investments. Inheritance and family wealth : Assets gifted or inherited, like a family business or heirlooms can be protected for future generations.
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8 | SCRUTTON BLAND | PRIVATE CLIENT
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