Many people are concerned that their assets will not end up where they intend them to when they die. The best way to safeguard against this is to have a professionally drafted Will in place.
You can go even further with a property protection trust, which is a special Will designed to protect your interest in the family home when you die. It also protects the surviving spouse/partner by entitling them to carry on living in the property as a ‘life tenant’, giving them security and peace of mind.
To set up a protective property trust, the family home must be owned by both of you. It must be set up while you and your spouse/partner are both alive and in sound mental health.
You are not allowed to set up a trust simply to avoid paying care home fees. If you do, the local authority can recover the fees from the trustees of the trust.
The trust changes the ownership so that instead of owning the property as ‘joint tenants’ you own it as ‘tenants in common’, and you both own a half share of the property. When one of you dies, that half share passes to the trust, guaranteeing that at least 50% of the value of the property will pass to your children or whoever else you have chosen. It cannot be given to anyone else, or used by anyone else.
The 50% share continues to be held in the trust even if the surviving spouse decides to move home.
A protective property trust can also be used to protect the home if the surviving spouse remarries. It’s quite common for people to forget to update their Will when they remarry and the old Will becomes invalid, resulting in the property passing to their new spouse under intestacy rules.
How we can help
We are fully regulated by the Law Society and can guarantee that your protective property trust will be prepared by a fully qualified and highly experienced solicitor.
For further peace of mind, we will give you a fixed price quote that you are free to compare and discuss with your family before deciding to go ahead with the trust.
If you would like to know more about setting up a protective property trust, or would just like a chat about your options, please contact our friendly team.
PLEASE BEWARE of unregulated companies selling protective property trusts – their prices are vastly inflated and the trust may even be illegal.