Protective Property Trust Wills

MW Legal Services, protective property trust wills

MW Legal is here to help you protect your family’s largest asset, the family home.

So, what can a Protective Property Trust (PPT) do for you? A PPT offers much more than just financial security; it provides peace of mind by ensuring that your share of your home is protected and will be passed on according to your wishes, while your partner can remain living there for the rest of their life.

Once it is in place, you can rest assured that your home, filled with memories and sentimental value, will remain in the family.

To find out more, contact us today or head straight to our online will-writing page.

What are Protective Property Trusts (PPTs)?

A Protective Property Trust (sometimes called a Life Interest Trust) is a legal agreement included in wills to protect a family home (in legal speak, known as the Principal Private Residence (PPR)).

A Protective Property Trust does what it says on the tin; it protects your property from loss so that your beneficiaries’ share is guaranteed. For example, if the surviving spouse runs up large debts and is declared bankrupt, or if a local authority claims the home to pay for care fees, the children will still to inherit at least half the house.

Upon the first death, the deceased’s share of the family home is placed in trust for their children’s inheritance, and usually, everything else goes to the surviving spouse/partner, who can remain living on the property for the rest of their life.

Crucially, it allows your executors and trustees to make full use of the Inheritance Tax Nil Rate Band and also, if the house and family qualify, full use of the Residence Nil Rate Band. So, a married couple can leave up to £1 million to their children before any IHT is payable.

If you want a Family Protection Trust, feel free to ask us separately about these.

We also have available an excellent leaflet that may help you understand a bit more about Protective Property Trust and their uses in your wills.

How much does a Protective Property Trust will cost?

A Protective Property Trust costs just slightly more than our standard mirror wills. If you wish to upgrade a basic will to include a PPT, you can use our simple online form to create a Protective Property Trust will here. This will also change ownership of your house from Joint Tenants to Tenants in Common.

See our prices page for further details.

When should you consider creating a Protective Property Trust?

If you wish to protect your home for your future beneficiaries, the simple answer is to do it now. You should always have a will that reflects your current wishes, so we advise that you review it every four to five years.

That said, there are certain trigger points for including a Protective Property Trust in your will, such as:

• Buying a new property
• Getting married
• Having children

Key features of protective property trust wills

• Trustees are added to the legal title of your property, ensuring they protect your share of the property for your ultimate beneficiaries, typically your children or other family members.
• Protects your share of the property against certain circumstances, for example:
  • being claimed by local authorities for long-term care fees
  • being used by creditors to pay any debt incurred by the surviving spouse
  • being bequeathed to a new spouse if the surviving partner remarries
• On the first death, the surviving spouse or partner becomes the Life Tenant, with a legal right to continue living in the property.
• The chosen beneficiaries inherit the property only after the second death.
• The trust usually allows the Life Tenant to move house using the trust fund, with the option to downsize, though this can be restricted if desired.
• These trusts are Inheritance Tax neutral, allowing full use of the Nil Rate Band and Residence Nil Rate Bands without affecting Capital Gains Tax liability.

Who are Protective Property Trust wills for?

PPTs are mainly used in a traditional family situation, i.e., mum, dad and children. The trust protects the family home upon the first death, ensuring the children receive their share of the property upon the death of the second spouse.

There are other good uses of a PPT. For example, a couple in their second marriage with children from their first marriage can ensure that their share of the house goes to their own children while ensuring that their new spouse will always have a roof over their head.

Whatever your reason for creating a property trust, it is a very effective, tried and tested legal agreement that provides valuable peace of mind.

Our Protective Property Trust service

We can create a Protective Property Trust Will for you in one of two ways.

Our online will-writing service is quick, cost-effective and convenient if your circumstances are straightforward.

Alternatively, we can visit you at home or discuss your will over the telephone or email. This is ideal if your circumstances are a little more complicated or simply if you value a face-to-face service. As you would expect, there is a premium attached to this service. See our pricing page for details.

You will be pleasantly surprised with the speed of our service. Most of our wills are written within two working days of receiving the instructions.

Protect your family’s future today

To ensure your share of the family home is inherited by your children or other chosen beneficiaries, create a Protective Property Trust today. You will have valuable reassurance that your home is protected for the next generation while ensuring your surviving partner or spouse can remain living there for the rest of their lives.

Our PPT wills are great value for money, and the process is quick and convenient. Put it on your to-do list today and enjoy the reassurance and peace of mind that your family home is protected.

Contact us a friendly will writer for further information about Protective Property Trusts or to arrange a home consultation.