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Protective Property Trust
How does it work?
At the same time as setting up this Trust which is written into the body of the Will….the clients will severe the tenancy on their property from Joint Tennants to Tennants in Common…..this in effect gives them both an equal 50/50 share of the property….By effecting this it means that on first death 50% of the property is passed on to the chosen beneficiary…
Why would you do this? | Benefits
- Many couples are worried that in the event of their death their children may not benefit from their potential inheritance. Should their partner remarry, setting up the trust means that the childrens’ 50% share is always protected
- Divorced couples can also benefit from the trust in making sure their half is protected for the children or any other third party
- In the future should the surviving partner still be living in the property and be in a position where they have to move into a care home, then the local authority could seize the property to pay for the care home fees. If this did happen then 50% of the property, which is held in trust, would be protected for the beneficiaries (usually the children).
Please note on first death, and only on first death, when the Trust becomes activated, would be very difficult to effect any other secured landing on the property (eg increase the mortgage/take a further advance or remortgage). You would also not be able to effect an Equity Release Scheme
All Trusts produced carry £2.5m level of Professional Indemnity Insurance
Contact Us now to discuss your requirements!