Most people assume that their home will pass on to their children (or other relatives) when they die. Increasingly, the only way to guarantee this it to put a Protective Will Property Trust in place. Why? Because, currently, anyone with assets in excess of £23,250 (this includes the family home) may not be eligible for any state help with residential care fees. So, if you own your own home and need to go into care you are unlikely to receive any financial help from the state. In fact, your home may have to be sold to fund your care.
A Protective Will Property Trust is a legal document that states equal ownership of your home with your partner. When the first partner dies, their share of the property is placed into a Trust to be administered by the Trustees. In setting up a Protective Will Property Trust, you will both make Wills naming the people who will eventually inherit your shares (typically your children). The surviving partner, under the terms of the Trust, has the right to remain living in the property for the rest of their life, even though the other partner's share is now owned by the Trust.
“The surviving partner, under the terms of the Trust, has the right to remain living in the property for the rest of their life.”
On the death of the second partner the Trust comes to an end and the property passes to the people named in the Will.
If the surviving partner chooses to sell and move to another property, the money from the sale can be used to purchase the new property and the terms of the Trust transfer to this property. If there is any profit from the sale, then the money is invested and the surviving partner can take the interest this income earns.
The deceased's share in the property is fully protected for the beneficiaries, so even if the surviving partner remarries, the children's inheritance is protected. This is particularly relevant for couples who have come together and have children from previous partners.
To find out more about the benefits of a Protective Will Property Trust, go to Why do I need a Protective Will Property Trust.
Did you know?
A Protective Will Property Trust can be set up to ensure that your current partner can live in your home until they die, and that your children from previous relationships get your original share of the property when your partner dies.