Property Protection Trusts (PPTs

Dear Seaford Scene readers

This month I would like to talk about something very important… protecting the family home. Property Protection Trusts (PPTs) are by far one of the most common types of trusts included in wills. It is likely that many of you reading this now will own a home with your spouse, or a partner. It is also likely that for most of you, the home is your biggest asset. Therefore, there’s no doubt that you will want to look to protect your home and ensure that your share goes to who you want it to go to (more often than not your children).

A Property Protection Trust is designed to take the deceased’s share in the home and give someone else (usually your spouse or partner) a life interest in the property which will give them the protection of living in the property for the remainder of their lifetime or earlier if the trust specifies i.e. remarriage. It also ensures that if the survivor requires long term care, at least half the property is preserved for the benefit of your beneficiaries. This trust ensures your beneficiaries are protected and eliminates any risk of sideways disinheritance – whereby the surviving partner remarries, and the house passes to their new spouse under the Will. The trust would be set up on the death of the first person. The legal title will then be transferred into the joint names of the surviving spouse/partner and the trustees. It is important to add here that a property cannot enter a life interest trust on death as until the mortgage has been settled, you are not seen to own the property. As a result, it is imperative to ensure that life cover is in place. The property must be held as tenants in common (TiC) to enter the trust. Holding the property as

Please recycle this magazine when you have finished with it.

Advertising Feature tenants in common means that each owner holds a share of the home which can be gifted via your Will. If the property is held as joint tenants, the survivor would inherit by virtue of survivorship, regardless of what is in the deceased’s Will.

A Property Protection Trust can also include powers to allow the life tenant to downsize and use the sale proceeds to purchase a substitute property to live in. The additional proceeds from the sale will remain in the trust and the life tenant can be paid an income from this. This can be useful where the life tenant may not be able to look after a large home as they grow older.

Property Protection Trusts are a serious consideration for those who wish to protect their main asset. If you want to take the first step and get in contact with me, I can be reached on 01323 893 245 or by email at jamie@penrosewills.co.uk I look forward to speaking with you soon. Jamie Howell Penrose Wills Limited

Mr Moss

Moss clearance by hand and roof sprayed to prevent re-growth

Over 45 years experience All roof repairs Flat roofs Firestone rubber roofing system New roofs