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A Property Protection Trust in your Will can help you provide for a surviving partner while planning for your share of your home to pass to the people you choose. It may be particularly useful for families concerned about remarriage or children from previous relationships.
Based in Rushden, Nene Legal offers free home visits in Rushden, Higham Ferrers, Kettering and Northampton. We explain the benefits, limitations and responsibilities before you decide whether a trust is right for you.
Without a PPT your property might be vulnerable. Let’s take a look at four common scenarios:
Mr and Mrs Smith both have children from previous relationships. They want the survivor to remain in their home while each person’s share is ultimately intended for their own children.
Subject to the ownership arrangements and Will terms, a Property Protection Trust could allow the survivor to benefit from the home while setting out who should receive the first person’s share when the trust ends. Individual circumstances and any legal claims still need to be considered.
Mr and Mrs Brown want to provide for each other and their children. They are also concerned about what could happen if the survivor needs residential care.
A trust in the first person’s Will may help preserve that person’s share for their chosen beneficiaries. The survivor’s own assets and the terms of the trust remain relevant, and no trust can guarantee the outcome of a future care assessment.
Mr and Mrs Jones would like to support each other while making provision for their children if the survivor later forms a new relationship or remarries.
A Will trust can set out who should benefit from the first person’s share when the trust ends, while giving the surviving partner rights under the trust. The outcome depends on the Will, the property ownership and the family circumstances.
Mr and Mrs Crowe are concerned about how a later change in the survivor’s circumstances, such as a new relationship or divorce, might affect their family home.
A trust may provide a way to separate the first person’s share from the survivor’s own share. The effect depends on the trust terms and the circumstances; it cannot guarantee the result of a future legal claim or financial settlement.
A Property Protection Trust is a trust written into a Will. In a common arrangement, the first person’s share of the home passes into the trust when they die. The surviving partner is given the right to benefit from the property, often by living there, under the terms of the Will.
When the trust ends, the trust property passes in accordance with the Will. We will explain whether the arrangement is suitable for your family.
A trust may help a surviving partner remain in the home while setting out who should benefit from the first person’s share later. It can be relevant where there are children from previous relationships or concerns about remarriage, later-life care or other changes.
The outcome depends on the ownership, the trust terms and the circumstances. A trust cannot guarantee protection against every eventuality.
Read our guide to care costs and Will trusts.
The first person’s share is held by trustees appointed in their Will, with the survivor’s rights and the final beneficiaries set out in the trust. The trustees must follow the terms of the Will and their legal duties.
For example, the trust may let the survivor live in the home and, if the Will permits, move to a replacement property. When the trust ends, the share passes as directed by the Will.
How you own your home matters. Joint owners who hold the beneficial interest as joint tenants generally pass their interest to the surviving owner automatically. Tenants in common have distinct beneficial shares that can usually be dealt with in their Wills.
We can discuss your ownership arrangements and, where appropriate, the process of severing a joint tenancy. We will explain any paperwork needed and how this fits with your Wills.
No. A properly drafted Will trust may help protect the first person’s share in some circumstances, but the survivor’s own assets, the trust terms and the rules in force must all be considered.
We will explain the potential benefits and limitations for your situation. A trust does not guarantee the result of a future care assessment.
A Will trust can be drafted with powers that allow trustees to sell the property and buy a suitable replacement, subject to its terms. It can also address downsizing, what happens to any surplus, who may benefit from it and how decisions are made.
You appoint trustees in your Will. They must follow the trust terms and their legal duties; there may also be ongoing administration, registration and tax considerations.
