How to Safeguard Your Property with a Property Protection Will Trust

Property Protection Will Trusts

Are you worried that the value of your children’s inheritance will be diminished if you or your partner have to go into care? The Property Protection Trust (PPT) Will is the solution you need. Designed for co-owners of property, this type of Will allows the surviving partner to continue living in the property while safeguarding the deceased’s share of the property for the next generation.

With a Property Protection Will Trust, each partner can leave their share of the property to the other through a life interest trust and then outright to their children upon the death of the surviving partner. This ensures that the children receive their fair share, no matter what happens in the future. Even if the surviving partner goes into care, remarries, or changes their Will, the share of the property belonging to the first partner to pass away will still go to the children.

Property Protection Will Trusts are especially suitable for married or unmarried couples who have few assets other than their home. But they also offer a practical solution for couples with few assets apart from their home, where one or both partners have children from a previous relationship. Making a PPT Will ensures that each partner can make their own children the eventual beneficiaries of their Property Protection Trust, safeguarding their inheritance for the future. Don’t let your children’s inheritance be at risk – consider a PPT Will today.

What is a life interest trust?

Imagine being able to provide for your loved ones after your passing. This is possible with a trust known as a life interest trust. The trust’s income is paid to a specific beneficiary, known as the “life tenant,” throughout their lifetime, while the trust’s capital passes on to other beneficiaries after the life tenant’s death.

If you opt for a Property Protection Will Trust, the surviving co-owner becomes the life tenant, and their children (usually) become the beneficiaries who receive the trust’s capital after the life tenant passes away. This means that your loved ones can continue to benefit from your assets even after you’re gone.

With a life interest trust, you have the peace of mind that comes with knowing your loved ones will be provided for both during your lifetime and after your passing. Don’t wait – consider a Property Protection Trust Will today.

What do we mean by ‘Income’?

It all depends on how the trust’s capital assets are held. It can include interest earned from a bank or building society, dividend payments on shares, and rental payments from any rental property. But what’s really important, as it relates to a Property Protect Trust Will, is the right to occupy a property held by the trust rent-free.

This is particularly relevant in the case of a Property Protection Trust Will, where the trust’s only asset is the share of the property owned by the deceased co-owner. By utilising this type of trust, the surviving co-owner can continue to occupy the property without worrying about rent payments or other expenses. Then, on the death of the life tenant, the share of the property is distributed to the other beneficiaries as outlined in your Will.

Benefits of a Property Protection Will Trust

Protective Property Trust Wills offer a range of benefits, including:

  • Protects your children’s inheritance: By using a Property Protection Trust Will, you can ensure that your children will receive their fair share of your property, even if the surviving co-owner goes into care, remarries, or changes their will.
  • Enables the surviving co-owner to occupy the property: With this type of trust, the surviving co-owner can continue to live in the property without worrying about rent payments or other expenses.
  • Offers flexibility: Property Protection Trust Wills offer a practical solution for couples with few assets apart from their home, or where one or both of the couple have children from a previous relationship.
  • Prevents disputes between beneficiaries: By clearly outlining who receives what from the trust, you can minimise the risk of disputes and ensure that your wishes are carried out.
  • Provides peace of mind: With a Property Protection Trust Will, you can have the peace of mind that comes with knowing your loved ones will be taken care of after your passing.

The cost of setting up a Property Protection Will Trust can vary, but it’s important to consider the potential benefits and how they could help to safeguard your property for future generations.

Is a Property Protection Will Trust Right for You?

Property Protection Will Trusts can be a suitable option for individuals who own property and want to ensure that it passes to their chosen beneficiaries. It’s particularly relevant for individuals who are concerned about care costs in the future and want to protect their property from being sold.

However, it’s important to seek legal advice to determine whether a Property Protection Will Trust is right for your individual circumstances. An experienced professional, such as us, can provide guidance on the best course of action, and help you to establish a trust that’s tailored to your specific needs.

Property Protection Trust Will in Practice

John and Jane are a married couple with two children. They jointly own their family home and are concerned that if one of them were to pass away, their children’s inheritance could be diminished by care home fees for the surviving spouse. They speak with a the Twilight Group and decide to set up a Property Protection Trust Will, with each of them leaving their share of the property to their children and giving a life interest to their spouse so they can continue living in the property until their death.

Sadly, John passes away, and his share of the property is put in trust for the two children. Jane, the surviving co-owner, continues to live in the property and is entitled to receive any income generated by the trust during her lifetime. However, a few years later, Jane is diagnosed with a degenerative disease and needs to be placed in a care home.

Thanks to the Property Protection Trust Will, John’s share of the property is protected for the children, even though Jane is now going into care. The value of John’s share of the property is not taken into account when assessing her means for care home fees, because it is held within the trust and not owned by Jane. This means that Jane can continue to receive care without having to sell the property, and the children can still inherit the full value of John’s share in the property when Jane passes away.

Overall, a Property Protection Trust Will provides peace of mind for John and Jane, knowing that their children’s inheritance is protected, even if one of them needs to be placed in a care home.

Conclusion

Property Protection Will Trusts can be an excellent way to safeguard your property and ensure that it passes to your chosen beneficiaries. By establishing a trust within your will, you can protect your property from being sold to pay for care costs in the future, and provide an income for your surviving spouse or partner. It’s important to seek legal advice to determine whether a Protective Property Trust Will is right for you, and to ensure that it’s set up correctly to provide the maximum benefit.

Ready to safeguard your property for future generations? Contact Twilight Group, the experts in all things estate planning and Property Protection Will Trusts, to set up your Will Trust today. Our experienced team can provide tailored advice to meet your specific needs and ensure that your property is protected from being sold to pay for care costs. Don’t wait, secure your property’s future now with Twilight Group.

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