Property Protection Trusts

Grandad and son

What is a Property Protection Trust?

A Property Protection Trust helps protect your share of your home’s value in the future. You can also ensure that your estate will pass onto your loved ones, exactly as you wish.

Want to find out more about a Property Protection Trust? Contact us now.

How does a Property Protection Trust work?

White flowersAlthough a Will makes your wishes known, it may not provide protection for your assets. Your half of your home’s value may be at risk of being passed to another family after remarriage (sideways disinheritance), or used to fund your partner’s care costs.

Property Protection Trusts are usually set up by married couples and civil partners who own their home jointly. The ownership of the home is split to ‘tenants in common’, so each partner has 50% of the property. Each half is then left to the Trust, rather than to each other.

If you jointly own a home, your share will automatically go to your partner when you pass away. If they remarry, a Trust written into your Will protects your half of the property, so your assets pass on correctly. Prevent your loved ones from being disinherited and set up a Trust with Severn Estate Planning.

If you or your partner need care in the future, only one half of the home can be taken by the local authority to pay for care costs. This means your loved ones will receive their inheritance just as you intend.

Benefits of a Property Protection Trust

With a Property Protection Trust, you and your family can enjoy many benefits:

Complete control of your assets
Your estate will be distributed to your exact wishes
Protection from care costs

Severn Estate Planning can even include a Will when you take out a Trust, to ensure your estate is securely protected.

You will also still be able to move home. The Trust is simply altered, and your new home will be covered and protected.

Grandparents with grandchildStep by step

Our experienced consultants will guide you through the process. Your Trust will be tailored exactly to you and your partner’s wishes.

  1. The Trust is written into you and your partner’s Wills
  2. When the first partner dies, their share is added to the Trust
  3. The survivor can live in the property as long as they want
  4. When the survivor dies, the deceased’s share of the property is distributed as planned

While you act as the main Trustee, you can nominate other Trustees to also have responsibility over the Trust. Trustees are legally required to manage the Trust for the beneficiaries and always act in their best interests.

Money houses

As the Trust does not come into existence until the first partner dies, you are able to make changes to your Will and the Trust.

While it may provide some protection, there is no guarantee that a Property Protection Trust will protect your assets from being used to pay for care, and this should not be the only reason for purchase. 

Once we’ve taken your instructions, we will:

We also provide Family Protection Trusts.

If you want to know more about Property Protection Trusts, click below to visit our Trusts FAQs page.

Ready to know more?

Get in touch and speak to one of our friendly advisers today.