A property protection trust allows you to take care of everyone’s needs

Guide to Property Protection Trusts

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A Property Protection Trust, or PPT as it is often shortened to, is a type of trust that can help protect your share in a property.

What is a Property Protection Trust?

What are the benefits of a Property Protection Trust?Typically, when a couple owns a house together and one partner dies, their share passes to the surviving spouse. Whilst at first glance this would appear practical, should the surviving partner require residential care, the whole property could then be used as collateral to fund it.

It could also protect your loved ones inheritance. This could be incredibly important if you have different Beneficiaries to your partner e.g. if you have children from a previous relationship. Without a PPT, your partner could change their Will and omit your Beneficiaries.

A property protection trust allows you to take care of everyone’s needs; your partner gets to stay in the property for the rest of their life and your Beneficiaries are guaranteed their inheritance.

How does it work?When either partner passes away, their share of the property will be put into a trust. The trust is included in your Will and would be managed by your appointed Trustees. Should the surviving partner then require residential care only their share of the property could be used to fund it thus protecting a good chunk of your Beneficiaries inheritance.

When the surviving partner passes away, the Trust ends and the share in the property goes to your chosen Beneficiaries.

Can my Beneficiaries benefit from my share of the property whilst my partner is still alive?No, they can’t. The idea of a property protection trust looks after the needs of your surviving partner and your beneficiaries by securing their inheritance and ensuring your partner has the right to remain in the property for the rest of their life.

Without a PPT, your partner could change their Will and omit your Beneficiaries.

Is it possible to have a PPT without a Will?No. A Property Protection Trust is part of your Will.

I already have a Will. Can I just ‘add in’ a PPT?Unfortunately not. As a PPT is part of your Will, you will need to make a new Will.

I’ve got children from a previous relationship. How could a PPT help me?A Property Protection Trust is particularly useful to people with children from previous relationships as it can help safeguard their inheritance. If you were to pass away before your partner, your share of the property would go into a trust. Then, upon the remaining partner’s death, the trust would end and your children would then benefit from your share of the property.

Without a PPT, your share of the property would pass to your partner who could then rewrite their Will, leaving your children with no inheritance.

Who looks after the Property Protection Trust?The Property Protection Trust is looked after and managed by your Trustees who you appoint in your Will.

What happens if we move?When you make your Will and Property Protection Trust, you can add a clause to it which means your share of any property jointly owned at the time of death would be put into the trust. That means if you move, the new property is automatically covered by the trust. You would just need to make sure that the new replacement property you bought was held in shares as well.

I’m single. Can I take out a Property Protection Trust?Unfortunately not. A Property Protection Trust is only available to couples or two people who jointly own a property. Our Wills Team would be happy to speak to you about what other options maybe available to you.

I’m married but the house is just in my partner’s name. Can we take out a Property Protection Trust?No. A Property Protection Trust is only available to couples who jointly own a property. But our Wills team can advise you on putting your property into your joint names.

How do I get a Property Protection Trust?Arranging a Property Protection Trust is very simple and can be done during your telephone Will consultation. Please call 0800 999 7430 for more details or to arrange a telephone appointment.

Single?Speak to our Wills team about alternatives to a PPT

A Property Protection Trust is also available as part of The Lifetime Plan.

The Goldsmith Williams Lifetime Plan is designed for those who wish to go one step further in protecting themselves and their family and friend’s inheritance and includes;

Two standard Wills

Two Lasting Powers of Attorney

A Property Protection Trust

Guidance with Probate and Estate Administration

Free storage and updates of all documents

Membership to Goldsmith Williams Premier Client Club.

If you have any questions about anything in this leaflet, please call our Wills team on:

0800 999 7430

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Goldsmith Williams Solicitors / Mersey Chambers / 5 Old Churchyard / Liverpool / L2 8GW.

DX address 14186 Liverpool. Goldsmith Williams is authorised and regulated by the Solicitors’ Regulation Authority under number 48089 © Goldsmith Williams Solicitors. 0120/005/181012