Protective Property Trust
A Protective Property Trust enables you to safeguard at least half of your property. The Trust is activated on first death and provides the following benefits:
- The life-tenant has a right of residence in the property for the remainder of his or her life or a clause can be inserted so that life interest is removed upon re-marriage. The trustees, often the children, cannot evict the life tenants. If later on in life the surviving spouse wants to sell the property, buy another one, thereby releasing some equity, they can do so.
- Gifting your house to someone else whilst still alive can mean you lose all control and rights over the property and if you die within seven years it may mean a significant tax bill according to the seven year rule.
- People often want their children to inherit their family home in the event of one or both of them dying. However, without sufficient protection this may not always be possible.
- Where a home is jointly owned the property automatically passes over to the surviving partner. This creates a potential problem if the surviving partner then goes on to remarry or cohabit, leaving the estate to their future wife or partner. The estate may then pass to children of that relationship and the deceased partners children disinherited. A protective property Trust protects against these circumstances and involves severing the joint tenancy where required, so that the owners become Tenants in Common.
- Placing the property into trust allows some protection over the property should a beneficiary be declared bankrupt.
- A Protective Property Trust: To discuss whether this trust may affect any liability with regards a Local Authority assessment for care please contact Findon Legal Consultants on 0845 2723584 or contact us on the enquiries section of this Website.
Children from other marriages:
- A Protective Property Trust ensures that each child is guaranteed their planned inheritance or distribution of assets, ensuring that your part of the property goes to your children. Assets are released upon second death and or upon re-marriage of the surviving partner, guaranteeing that each child or beneficiary receives the inheritance planned.
How many Trustees are needed?
- At least two Trustees are appointed at outset one of whom is usually the surviving spouse.
Contact Findon Legal Consultants for more information on these or any other trusts.
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