Keeping your family home in the family
A Property Trust can be created when a property is jointly owned. One of our experts can visit you in the comfort of your own home at your earliest convenience to recommend the products that will provide the correct protection for you, your family, and your assets.
What is a Protective Will Property Trust?
It is an enhanced Will that offers some protection for the property by ensuring that on the first death, that share is protected from interference by third parties. That share will also be protected from assessment for care home fees should the surviving owner require care in the future.
It’s designed to enable joint owners to be more flexible with their share of the property enabling them to pass it to someone other than the joint owner.
If the current joint owner remarries or decides to gift their share to someone else then your share is fully protected for your beneficiaries.
This means that if the surviving owner needs residential care or gets into financial difficulties, then the first share of the property is protected and will not be assessed or at risk.
What does it mean for the surviving partner?
The surviving owner has the right to live on the property for the rest of their life. They cannot be evicted by the trustees (your chosen people who manage the Trust).
The surviving owner can sell the house if they wish to and buy another, but any profit will be split equally between them and the trustees.
The surviving owner usually controls the Trust with at least one other person, typically another family member.
At Will-Desk, our Consultants are fully versed in providing advice on all types of trusts including:
- Interest in Possession Trust
The beneficiary can receive an income from the asset but not the asset itself.
For example, a trust is set up for a rented property with a partner as the beneficiary of the trust for their lifetime. In this case, the partner is the beneficiary and can receive the income from the property. When they die the rented property will then pass to a specified recipient, such as their child. - A Bare Trust
This is a straightforward trust where everything is given to the beneficiary outright once they are over 18. - Mixed Trust
This is where some of the trust has specific provisions tailored to the requirements of the settlor (the person making the trust).
For example, part of the trust may be in the same terms as an Interest in Possession Trust, but some of the assets are treated under the rules of a different trust. - Discretionary Trust
This type of trust gives the power to the trustees to decide how the assets are distributed, and to make investment decisions within the trust. - Vulnerable Person’s Trust
There are circumstances where a specific trust such as this may be of tax benefit, providing the beneficiary is a ‘vulnerable person’.