Why Should We Consider a Protective Property Trust?
People are living longer and as a consequence more people are requiring nursing home care.
This kind of Trust helps protect your children’s inheritance from long-term care charges.
Without the correct type of protection Local Authorities can sell your home in order to pay for large care home fees.
A carefully worded Protective Property Trust can protect half of your property from being sold to pay for care – therefore saving half of your children’s inheritance!
In addition if the surviving spouse were to remarry any Will they have written becomes void and the new spouse will become their next of kin. A protective property Trust can ensure that your children inherit your half of your home rather than the new spouse.
How do Protective Property Trusts work?
Most people own their home as joint tenants which mean on the death of one their share automatically passes to the survivor.
You can severe your tenancy and become “tenants in common”. This means that each person owns 50% of the property and can leave it to whoever they want or put it into trust
Once you own your property as Tenants in Common you can have a Protective Property Trust put into your Will so that your half of the property passes to your children (or other chosen beneficiary) on your death.
If the surviving spouse then goes into care the Local Authority could only take the surviving person’s share of the property into account for fees.
A lifetime interest can also be written into the Will to allow the surviving spouse to remain the property as long as they want and the beneficiaries who own the other half cannot force a sale.
