Giving a gift is a great feeling, seeing half that gift disappear to someone you didn't expect it to go to would be crushing. Friends and family dynamics can be a constantly changing environment and it is wise to plan accordingly.
Unfortunately everyone doesn't walk off into the sunset and live happily ever after, or they may find themselves in a position where they could lose everything. Protecting a gift when it is given to a loved one can ensure control can be maintained by trustees.
Placing money or assets into a trust before gifting can protect from:
Protect the asset from creditors
IHT liability on the death of the beneficiary.
Diversion of wealth flow.
Prudent planning can avoid these potential problems and further reduce the tax liability on the death of the surviving beneficiary, allowing the wealth to flow down the generations in a controlled manner as a part of your legacy.