Property Protection Trust

Property Protection Trust

Property Protection Trust – A major concern for many people is their home could be used to fund care or on remarriage go to another family. This may happen if both you and your spouse you have just made a traditional mirror will.

On first death, your home will default to the survivor spouse. If the survivor then goes into care or gets remarried your inheritance could be at risk of going elsewhere. A Property Protection Trust can help you protect your share of the home and ensure that it is passed onto your loved ones.

How it works

Most people own their property jointly as beneficial joint tenants, meaning that they both own 100% typically the house passes to their spouse on first death and to their children or beneficiaries on second. A Property Protection Will has to be created whilst both partners are alive.

The joint tenancy is severed meaning both own 50% of the property each known as “Tennants in Common”. On first death 50% of the property is held in trust within the will for the beneficiaries. The surviving spouse has a lifetime interest and can live in it for life, or substitute it for another one.

If either partner requires care they only have interest in their share, so 50% is protected. This cannot be used to fund care for the surviving spouse. Should the survivor re-marry, the deceased’s share is protected and cannot go to another family and is protected for their chosen beneficiaries.