Property Protection Trust

A simple Mirror Will may be suitable for some couples but what if there are children from a previous relationship or the survivor re-marries?  In those situations, it is easy for children to lose out on their entitlement by ‘sideways disinheritance’.

Many people do not consider that after the first person has died, the surviving partner could change the terms of their own Will. They could choose to leave their estate, which includes assets from the first person who died, to a new partner or spouse. It could even happen accidentally if they re-marry as marriage revokes any existing Will.

With the right advice, there is a way to protect at least half the value of the family home for the benefit of the children. This is achieved by writing your Will in such a way that it puts half the home into a Trust when the first spouse dies. The terms of the Trust allows the surviving spouse to continue to live in the family home (or move to another home) during their lifetime and usually it is upon their death that the Trust comes to an end. These are called Protective Property Trusts.

By preparing a Protective Property Trust the value of the first spouse half share of the home is ring-fenced so that it isn’t considered if the surviving spouse is financially assessed for residential care home fees. The reason is because half of it is owned by the Trust and the other half is owned by the surviving spouse.

If you are not married or in a civil partnership, you can still benefit from a Property Protection Trust, however there would be tax implications to consider. Of course, whether a Property Protection Trust is right for you will depend on your individual circumstances and your wishes.

For further information on Property Protection Trusts follow this link Back to Basics – Property Protection Trust - The Society of Will Writers

For further advice or assistance on this matter, please contact me.