The Protective Property Trust, also known as a Life Interest Trust, may be a useful addition to your Last Will, as long as you don’t delay. You may wish to include a protective property trust in your will if:
family includes children from previous relationships, and you want to
ensure fairness for them without disadvantaging your spouse or
partner. You may also think it likely that your spouse will remarry
after your death and wish to protect the interests of your children
against any future relationship, without harming your spouses’
and your spouse or partner are concerned that you will be one of
around 70,000 people who lose their inheritance to the local council
through community care tax. This can wipe out all but the last
£14,500 of your estate.
do not wish to leave your share of your property to your partner, but
do wish to give them the right to live in the property for the rest
of their lives, before it is passed down to your children. You may
well provoke a claim under the Inheritance Act if this aspect is not
dealt with thoughtfully.
you are worried that you may need nursing home care in the future,
your local authority may have the right to force the sale your home
or put a charge on it. They will use the proceeds to meet the costs
of your care. You cannot transfer your property to relatives to avoid
paying nursing home fees without falling foul of the law.
you can include a protective property trust in your will containing
the following instructions: upon the death of you or your spouse,
half share of the property is put in trust for your children or other
beneficiaries instead of passing it directly to the surviving spouse.
Wills involve Two Parts
your home needs to be owned by both husband and wife. The ownership
is changed so you each own half, which is the usual situation where
you technically each own all of it.
allows both of you to write a special last will, where either partner
has the lifetime right to reside in the other half of the home after
the first death, as well as their own half. So when either of you has
passed, their half of the property goes into special protective
property trusts written into the will. The benefits of protective
property trusts include:
of children through remarriage of the survivor. The survivor can only
leave their half of the property as they wish and not the half owned
by the person who died. That share will eventually go to their
beneficiaries decided on by the first to die.
protection against care fees, unless you are unfortunate enough to
both need long-term care at the same time. Even then, there is the
possibility of saving some of your capital. However, this protection
will not be available if the property trust wills were put in place
after there was a reasonable possibility of long-term care being