Protective Property Trusts

Wealth preservation for future generations
Wealth preservation for future generations

Protective Property Trusts – also known as Lifetime Interest Trusts – a useful addition to your Will.

You may wish to include a Protective Property Trust in your Will if:

  • Your family has children from a previous relationship and you want to ensure fairness for them without disadvantaging your spouse or partner. Or you may think it likely your spouse will remarry after your death, and you wish to protect the interests of your children against any future relationship, without harming your spouses’ interest.
  • You and your spouse or partner are concerned that you will be one of around 70,000 people who lose their home to the Local Council for care home fees .

How does it work?

Most couple own their homes jointly, this means that if either dies the surviving partner will automatically become the sole owner of the property. This is known as Joint Tenancy.

It is possible to severe this tenancy so that a property is owned on a percentage basis, such as 50/50. This is known as Tenants in Common.   Via a Will each Tenant in common can leave their share of the property to whoever they wish.

On death their portion of the house they own is placed in a Protective Property Trust for the eventual benefit of say the children while the surviving partner has life interest in the home and a lifetime right to reside there.

The benefits of doing this include protecting your children’s inheritance in the event of the re marriage of the surviving partner, can give protection against care home fees providing they are done many years in advance and can provide some protection against creditors.

Sue was extremely professional and courteous throughout the whole process. She ensured we knew exactly what our options were and gave us all the information we needed to make well informed decisions.

Mr W Churchill, Derby

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