Coronavirus Update:
   We're continuing to do consultations at home, or by video/telephone call.
×
Home
Wills
Will Trusts
Power of Attorney
Family Trusts
Funeral Plans
Get a Quote
Contact

WILLS

WILL TRUSTS

POWER OF ATTORNEY

FAMILY TRUSTS

FUNERAL PLANS

Will Trusts


Property Protection Trust Explained

Firstly, a Trust is a legal vehicle where the ownership of the asset or assets are separated from the person or persons who will benefit from the assets. The legal owner is called the “Trustee” and the person who benefits from the asset is called the “Beneficiary”. The Trust itself is the terms on which the Trustee holds the assets for the Beneficiary.

A Property Protection Trust is simply a Trust where the asset is a property (or a share of a property) and the Trust is established usually for the purpose of allowing a current occupant to continue living in the property whilst protecting the capital value for the benefit for others. This is very common for individuals who have children from previous relationships but would like to provide a home for their current spouse or partner.

Trusts can be set up in an individual’s lifetime or on their death by Will.

The most typical type of Trust used for properties where the property is also a residence is a Life Interest Trust. A Life Interest Trust is a trust where you separate the right to income from the right to capital. The right to income may mean the right to receive interest or dividends from savings or investments or in this case, a right to reside in the property (rent free) or the right to receive the rental income. The person entitled to the income for their lifetime is called the “Life Tenant” and the person or persons entitled to the capital on the death of the life tenant is known as the “Remainderman”.

Property Protection Trust Advantages

The obvious advantage of a Property Protection Trust set up in a Will is that the Property or a share of it can be protected in the event of a change of circumstances of the Life Tenant for example, remarriage, going into long term care, being declared bankrupt etc.

When this type of Trust is set up in a Will, the deceased person is protecting their property (or share of) and therefore it will not be classed as deliberate deprivation of assets for the purposes of long term care as the owner has already died.

If the Life Interest Trust is contained in a Will, the Trust does not take effect until death which means an individual is free to use or dispose of their property during their lifetime (if needed). It also means that the can equity release.

Through a free consultation, let us explore your personal circumstances and recommend a service that's right for you.

Book a free consultation
   
Expert Family Protection Trusts

Expertly Drafted Will Trusts

Estate Planning is an important step for you and your loved ones, so we ensure it's done right by you and to your design. We're confident that with our advice, you'll lay out a solid and secure plan for the future of you and your family.
  • Free initial consultation
  • Flexible video/telephone appointments - at times that suit you*
  • Twenty years of experience
  • Personal, passionate service that's competitively priced
  • You only pay for the work that's required - no surprise invoices
* - We're currently doing all of our consultations via video and telephone calls for the safety of our customers, with the option to have home consultations wherever possible. During home consultations we follow strict social distancing guidelines.
Planning Your Future Ltd T/A Jonathan Owen IEP
Regus House, Falcon Drive, Cardiff, CF10 4RU

0800 3688596

Direct Debit AcceptedAMEX AcceptedVISA AcceptedVISA Electron AcceptedMastercard AcceptedMaestro Accepted
Expert Family Protection Trusts

Jonathan Owen IEP
is a member of the Society of Will Writers