You may also wish to reserve some influence over your assets for the trustees to observe after your death, for example:
- You may want to delay the age at which beneficiaries inherit
- You may want your heirs to receive their inheritance in stages
- You may be concerned about your heirs getting divorced and want to protect the assets inherited from you being included in a divorce settlement
Trusts can also be useful in preventing assets reaching a beneficiary facing insolvency proceedings and those making poor lifestyle choices, such as involvement in alcohol and drugs.
What is a Property Protection Will Trust and how can this help your family?
The Property Protection Trust (PPT) is a type of Life Interest Trust incorporated into a Will for couples living in England and Wales who jointly own the family home.
With this type of trust you can protect at least half of the value of the property to pass onto your children or chosen beneficiaries.
This involves severing yours and your partners joint ownership of a property into Tenants in Common, meaning you then own 50% each.
When one of you passes away, that 50% share is ring fenced in a trust and protected to go to your chosen beneficiaries, at the same time protecting the surviving partner’s lifetime interest in the property.
Trusts and protecting your children’s inheritance
A property protection trust is an ideal solution to ensuring your children receive their inheritance from you as you would be able to state in your Will that your 50% of the property value goes to your children within the trust and this would ring fence it no matter what future relationship changes occurred.
Similarly, many couples worry that if their partner remarries after they pass away, and everything in the estate had passed to the partner, children from the first marriage or partnership could be bypassed or left out in favour of any subsequent children. Again, a property protection trust will ring fence the first children’s inheritance.
Trusts and long term care fees
Most families are keen to pass on their family home to their loved ones but worry about the cost of care fees.
Once a share of a property has been passed to a surviving spouse or partner there is nothing to stop the entire property value from being included in a care fee assessment should the survivor require long term care in the future.