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Property Protection Trust

A Property Protection Trust can help you to pass your beloved family homes on to the next generation without worrying about financial commitments later in life.

What is a Property Protection Trust?

A Property Protection Trust is intended to protect a person’s property from any potential financial commitments later in life, such as care home fees. With a Property Protection Trust you are able to continue living in your home while also having the opportunity to pass on its value to your beneficiaries.

Effectively, a Property Protection Trust is designed so that a married couple (or one in a civil partnership) who jointly own a property can guarantee their future life in the home for as long as they wish. Furthermore, they will still be able to eventually pass the property on without fear that their loved ones will lose out for any reason. At the very least, one spouse’s half of the property will be preserved for the benefit of the trust’s beneficiaries.

Additionally, a Property Protection Trust could be incredibly useful if you wish to ensure that a property is passed on to a child from a previous marriage or relationship — while still being able to live in it with a new spouse for the duration of your lifetime.

Did you know that a Property Protection Trust can be used to reduce potential care costs in the future? This is because any property, or share in a property, held within the trust cannot be counted as part of your estate when the local authority begins to calculate care home fees.

However, if this is something you are considering, it is important that this is not the sole reason for you setting up the trust. This is called ‘deprivation of assets’ and will lead to the local authority assessing assets held within the trust regardless.

Get Started on Your Trust Today

If safeguarding your property from any eventuality down the line is a top-priority, a Property Protection Trust could be perfect for you. Click below to get in touch.

How to Set up a Trust to Protect Property

A Property Protection Trust is a vital tool in protecting your estate from financial commitments later in life. This type of trust may only be created with both partners alive — other methods of estate planning should be considered if this is not the case. From initial research, to the creation of documentation, and asset transfer, instructing a specialist is vital.

The process of creating a Property Protection Trust should include the following:

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Do The Research

As with all forms of estate planning, it is important that you conduct appropriate research. When it comes to protecting your assets and ensuring that they, and your loved ones, are protected against any eventuality, it is vital that you consider all of your options.

While a Property Protection Trust can be a great way to protect your assets from future financial commitments, you need to be careful to avoid being found guilty of deprivation of assets. An experienced consultant should be perfectly placed to offer their opinion and weigh up all of your available options to help you land on the ideal estate plan for your circumstances.

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Create the Document

If you have experienced support behind you, creating your Property Protection Trust should be smooth sailing. The most important aspects of your Property Protection Trust documentation should be detailing the specifics of your trust, including who your trustee(s) are, and who the ultimate beneficiaries of each share in the property will be (this is traditionally the surviving children of the deceased).

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Officially Transfer Your Assets

The actual act of transferring your estate into a Property Protection Trust is arguably the most important part in the process, so it is imperative that you get it right. Having a highly-skilled expert in your corner can ensure that no mistakes are made in the process.

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Remain in the Property

Once the trust has been created, and your home is entered into it, under the terms of your Property Protection Trust, you have the right to remain living in the property. Once either spouse dies, the surviving partner is able to remain in the home for the remainder of their life, or as long as they can stay in the property.

Upon the death of the remaining spouse, the trust officially comes to a close and the property will, in its entirety, enter into the possession of the beneficiaries.

Advantages of a Property Protection Trust

The main advantages of a Property Protection Trust are:

  • Ensure that your property’s value (or your share of it) cannot be used to pay care home fees
  • Guarantee your property in the event of a change of circumstances down the road (remarriage, bankruptcy, entering into care, etc.)
  • Minimise care home fees
  • Since this type of trust only takes effect after death, you are free to do what you wish to the property during your lifetime
  • Avoid probate

Get Started on Your Trust Today

Are you considering the future of your estate? If you’re taking stock and wondering how you can best protect both your assets and your loved ones, get in touch with a consultant to learn more about how a bespoke trust can help you.

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    Our Different Trust Services

    Depending on your circumstances, requirements, and wishes, there are a variety of different possible avenues to explore should you wish to protect your assets upon your death. In addition to our Property Protection Trust services, we can also assist you in creating either an asset protection trust or a family trust. Contact us for more information.

    Asset Protection Trusts

    Protect your estate against any future eventualities. No matter what happens to your finances in the future, an asset protection trust can ensure that your estate is safe from any parties who may want to access it against your wishes.

    Family Trusts

    Specifically designed to ensure that you can maximise the inheritance of your loved ones — to enhance the value of your estate. This type of trust is designed to afford you more control over your estate and the assets within.

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    Frequently Asked Questions

    How Does a Property Protection Trust Work?

    Property protection trusts allow you to safeguard your property/estate for future generations, while allowing for your spouse to continue to benefit from your estate without actually having complete ownership over it. Upon the surviving spouse’s death (or them entering into full-time care), the property, or your share in the property, will then pass on to your beneficiary.

    How Much Does a Property Protection Trust Cost?

    The price of a Property Protection Trust is based on your wishes, and the size and complication of your estate. Therefore, it’s impossible to be certain how much your Property Protection Trust will cost. It is recommended that you get in touch with a specialist consultant to learn more about the best solutions available for both your needs and budget.

    Just Wills & Legal Services’ team of consultants are on hand to discuss your wishes with you at your convenience, before advising you accordingly on the best steps going forward.

    When Should I Make a Property Protection Trust?

    You should consider estate planning such as creating a Property Protection Trust, as soon as possible once you own property for yourself. However, to avoid deprivation of assets investigations from your local authority, it is important that your trust is in place a good-amount of time prior to your death/entering into care.