Protective Property Trusts
A Protective Property Trust Will is an ideal solution for those who do not wish to opt for an Asset Trust. This is because a Protective Property Trust is more cost effective to set up compared to a Lifetime Property Trusts and is usually better than having a standard Will for most couples, and a more cost-effective option for younger families.
Protective Property Trusts:
THE FIRST PROTECTIVE PROPERTY TRUST OPTION
A Property Trust from On Point Legal Services Ltd can only be created whilst both partners are alive and hold property as Tenants in Common. The Trust instrument is then included in both Wills but does not come into force until after the death of the first party.
At this point their share of the property – typically 50% – is placed into the Trust for the benefit of their chosen beneficiaries, while the surviving partner remains living in the property. On the partner’s death the Trust ends and the property passes to the beneficiaries. It may sound a little complicated but our professional advisers will guide you through the process – all from the comfort of the very home that you want to safeguard, at a time that suits you.
The advantages of a Flexible Life Interest Trust
• Prevention of Sideways Disinheritance. The survivor can only leave their own share of the property to their stated beneficiaries so if they were to remarry the wishes of the first person to die are not overridden. On the second death the beneficiaries of the first to die will receive their inheritance as the second person to die has not inherited the entire property – only their own share.
• Protective Property Trusts can stop other creditors from making a claim against half of the property as long as there was no intent to deprive creditors of money when the trust was put in place.
What is a *Protective Will
• It is an enhanced Will that offers some protection for the property by ensuring that on the first death, that share is protected from interference by third parties. That share will also be protected from assessment for care home fees should the surviving owner require care in the future.
• It’s designed to enable joint owners to be more flexible with their share of the property enabling them to pass it to someone other than the joint owner.
• If the current joint owner remarries or decides to gift their share to someone else then your share is fully protected for your beneficiaries.
• This means that if the surviving owner needs residential care or gets into financial difficulties, then the first share of the property is protected and will not be assessed or at risk.
What does it mean for the surviving partner?
• The surviving owner has the right to live in the property for the rest of their life. They cannot be evicted by the trustees (your chosen people who manage the Trust).
• The surviving owner can sell the house if they wish to and buy another, but any profit will be split equally between them and the trustees.
Keeping your family home in the family
A Property Trust can be created when a property is jointly owned. One of our experts can visit you in the comfort of your own home at your earliest convenience to recommend the products that will provide the correct protection for you, your family and your assets.