Protective Property Trust

Protective Property 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.

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

A Protective Property Trust (will) enables you to safeguard your share of the property. The trust is activated when the will comes into force in the event of the testator dying.

The trust appoints a life-tenant, usually the spouse or partner, who has a right of residence in the property for the remainder of his or her life. A clause can be inserted so that the life interest ends upon remarriage. The trustees, often the children, cannot evict the life tenant. If later on in life the surviving spouse wants to sell the property, but another one, thereby releasing some equity, they can do so.

Without a Protective Property Trust, and where a home is jointly owned as joint tenants, the property automatically passes over to the surviving joint owner. This creates a potential problem if the surviving owner then goes on to remarry, leaving their estate to their future spouse. The house could then pass to children of the second relationship and the deceased partners children may get nothing. A Protective Property Trust protects against this and involves changing the joint tenancy where required, so that the owners become Tenants in Common and can then do as they want with their own half.

If the surviving owner goes into care, and the local authority is making an assessment for care fees, they will not be able to take into account any of the property already in trust, thus protecting it for future beneficiaries.

A Protective Property Trust ensures each child is guaranteed their planned inheritance or distribution of assets, ensuring that your part of the property goes to your children. Assets are released upon second death and or upon remarriage of the surviving partner, guaranteeing that each child or beneficiary receives the inheritance planned.

Having spent a lifetime saving hard for the possessions you have and repaying a mortgage you would be justified in feeling a little aggrieved if your children did not receive the benefit – the 3 most common reasons for this happening are:

  • Sideways Disinheritance – Losing the estate because the survivor remarries
  • Long Term care fees
  • Children with problems such as drug, alcohol or gaming addiction or even shaky remarriages.

The Property Protective Trust can help protect your home from these issues, please contact us for further advice tailored to your specific situation.