Secure the future of your assets
A Protected Property Trust (PPT) is a legally binding document which gives you more control over your property. Most family homes are owned by the married couple as "tenants in common" or "joint tenants". Put simply, in the case of joint tenants, both partners own all the property so in the event of one partner dying, the whole property vests in the surviving partner, automatically; neither party can "will away" their part of the property to a third party. What are the consequences of this? There are three potential pitfalls. Of course partners always want what is best for the surviving partner, but after one death, life goes on. The surviving partner may marry again, may make terrible investment decisions and go bankrupt or lose a lot of money or they may end their days in an expensive care home. In all of these cases, your children could end up with very little of their inheritance from you.
A PPT offers a way around this from happening. By becoming "tenants in common" - a simple procedure which we will explain to you - each of you owns a specific share of the home and you may will this however you please. Normally, it is fair to assume, partners want their other half to be looked after but at the same time want their children to benefit from the value of their home. A PPT enables you to pass on your share of the home to your children but gives your surviving spouse the right to live in the home for their lifetime. Then, when the surviving partner passes away, only their share of the home will be used to pay creditors and their own care home fees. Equally, only their share of the home can be passed on to a second spouse of step-children. Your share is secure and available to pass on in accordance with your wishes.
A testator is perfectly entitle to dispose of their property as they wish upon their death, leaving it in such a way that it will be protected from being used for the surviving spouse's care home fees. It is where an individual tries to deprived themselves of property by hiding away assets or selling assets to their children at a ridiculously low cost, that problems arise.
Protected Property Trust £225