What is a Property Protection Trust and how can it benefit you?￼
A Property Protection Trust (PPT) ensures that your estate is kept intact by protecting your share of your home or the value in it.
In the case of a couple, in order to create a PPT, we would firstly change joint ownership of the property to Tenants in Common, allowing each to own 50% of the property. This means that you can then ensure that your share goes to your chosen beneficiary in the event of your death.
By leaving your share of the property in a Trust to your partner/spouse you safeguard your assets from being lost should your partner re-marry, or the share reduced should the partnership end in divorce. It also protects the trust property from bankruptcy and care costs in later life for the surviving partner.
Another crucial factor is that the Trust allows the surviving partner to live in the property until their death. If the survivor then goes on to remarry, they cannot leave the whole of the property to their new spouse, as a portion is already owned by the Trustees on behalf of the chosen beneficiaries.
What are the benefits of a Property Protection trust?
Holding the assets in the Trust ensures that they do not count towards the beneficiary’s estate and so cannot be assessed for their contribution towards care costs.
Marriage After Death
Dividing the family home and other assets into a Trust ensures that, should the surviving spouse/partner marry in the future, those assets cannot be taken into the new marriage and therefore removes the threat of your own children being disinherited.
Creditors or Bankruptcy
Additionally, if any of your beneficiaries are subject to creditor claims or bankruptcy then their inheritance would not be affected by these claims.
Placing the assets into Trust ensures that, if your children are subject to divorce proceedings, then what you intended them to receive is protected from any settlements.
Holding the assets in the Trust ensures that they do not add to the beneficiaries’ estates and add to their Inheritance Tax.
Without the correct planning, some or all of your children’s inheritance could be lost. However, with a few simple strategies, Complete Estate Protection can protect you and your family from the needless expense and worry.
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