Property Protection Trust Ilfracombe
Many people living within the UK, currently do not have a will. If you do not have a will, now is the time to take action and to seriously consider writing a will. Doing so will protect your assets once you die so that your loved ones are looked after financially upon your death.
In a property protection trust, the surviving partner can continue to reside in their family home or profit from any income it generates upon the death of their partner. They will also have the ability to move house if they wish. Because half of the assets are in the trust, the inheritance will be secured for the eventual beneficiaries, usually the children. This remains the case even if one of the children is divorced or becomes bankrupt while the surviving partner is still alive.
There are many different types of will that are available for both individuals and couples. Sometimes it can be a little confusing as to what wills are best suited to your personal needs and circumstances, and this is when we can help guide you.
Our professional and friendly will writing professional will help to guide you through the process of writing a will, and will advise you on the best will for your needs. We also arrange a time and place that is convenient for you. One type of will that many people consider is a Property Protection Trust.
What is a Property Protection Trus Ilfracombe?
A Property Protection Trust Ilfracombe, sometimes known as an Asset Protection Trust, is a will that works a little differently to other trusts, as your wishes regarding the financial status of your property(s) is granted straight away, and not on your death.
What happens when you create a PPT is that your property is gifted straight away to the PPT, but allows you to still live in your property. Ultimately it protects the value of your property and your surviving spouse or partner.
Upon your death, half the share of the property will pass into the PPT, meaning that your partner is cared for financially. What then happens upon their death is that the trust fund then passes on to any remaining children or other named individuals stated in the will.
Residential care costs Ilfracombe
Another advantage is that if you do need to go into residential care as you age, then the value of your property will not be used in order to pay for your care. Therefore your care needs regarding accommodation will be assessed on a minimal asset basis.
However, there is a small warning that should be made clear when creating this type of will to eradicate the need for paying residential care costs. The half share of the property that belongs to the survivor, may be viewed as a capital asset and therefore used as part of the financial assessment.
Who should create a PPT?
Anyone can create a PPT, but the vast majority of people are those whose spouses will need long-term residential care. Therefore, those individuals who are in poor health or who have a disability.
While planning a PPT is most strongly indicated for those where one or both of the partners are likely to need long-term care such as the elderly or infirm, it is by no means limited to them. Old age comes eventually to us all and so it is worth making plans well in advance of such care being required, providing future peace of mind and taking away the burden of planning it later at what may well be a more stressful time for the family.
A property protection trust is also ideal for those in a second marriage who may wish to protect a future inheritance for their children without disadvantaging their spouse during their lifetime. Under these circumstances, the spouse will continue to reside or benefit from their house or other assets, but cannot leave that half of the property to anyone else.
Leaving assets in this way is more advantageous than simply leaving half directly to the children as inheritance upon the death of the first partner, since this could result in it being affected by the divorce or bankruptcy of the children or simply by a family dispute. To leave properties in a trust, they must be owned in joint names as tenants in common.
How is the PPT implemented?
With our will writing service Ilfracombe, we can help both you are your partner to write a will, with both of you leaving the share of your home info the PPT that is incorporated into part of the will
What is also important to remember when creating a PPT, is that the property should be owned with your joint names and that you are both stated as tenants. This is needed for the half share of the property to pass to the remaining spouse upon your death.
Controlling the Trust
The trust is controlled by the trustees, usually including the surviving partner and the executors of the will. The trustees do not have the power to evict the surviving spouse or prevent them from selling it. If they do move into a cheaper residence, the profits will be shared between the surviving partner and the trust.
Are there disadvantages to a PPT?
Trusts including a PPT do require more administration than simply leaving assets directly and in a large estate, there may be inheritance tax implications.
Anyone planning to set up a PPT should discuss it with their solicitors or will writing service. Our legal team can be contacted using the online form, phone or email for any queries.
It is also worth remembering that the trust does not come into force until the first partner dies. If family circumstances change before then, the will and other financial planning can be changed.
It is never too soon to start making financial arrangements for your estate. Solicitors and will writers will be able to discuss the best options for your family. To allow us to start making the arrangements, our online form is easy to use and simply takes details such as names, addresses, phone numbers, and email addresses. After this, a member of our team will be in touch to provide a quote for our services and if you are happy with this, start to set up your trust.