PROTECTIVE PROPERTY TRUST WILLS
What are they?
- Typically a property is owned jointly by two people. In order to place your property in this kind of Trust, the ownership of your home is changed by severing the joint tenancy, so that you each own (typically) half. The property will then be owned as Tenants in Common.
- Last Wills and Testaments are then drawn up allowing either partner, after the death of the first, a lifetime right to reside in the other half of the home, as well as their own half. In essence, when the first of you dies, their half of the property goes into special Protective Property Trust written into their Will.
- The survivor can carry on living in the whole property and move or downsize if they wish to, acting as is if they own the whole property; though half will be owned by the Protective Property Trust. There are restrictions such as not being able to take out a mortgage, and the survivor not owning the capital representing the other half of the home.
The benefits of Protective Property Trusts Wills include.
1) Protects your Children’s Inheritance. The survivor can only leave their half of the property, and not the half owned by the person who died. That share will eventually go to their beneficiaries decided on by whoever is the first to pass away.
2) Substantial Protection against Care Fees. The Protective Property Trust Wills are a means of protecting your home from long-lasting care costs should you need to go into a home. This usually happens after one of the partners dies. The local authority has the legal right to seize and sell the property in order to cover the care costs. The amount of capital that needs to be left in these cases is just £23,250 (2015/2016)
3) The Protective Property Trust Wills can give some protection against other creditors too, as long as they are unexpected (at the time the Wills were set up).
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