Protective Property Trusts
Many people have concerns that their homes may be used to fund care costs in later life. A Protective Property Trust (PPT) can help you protect your home and ensure it is passed on to those you care about.
How Does it Work?
Most couples own their house jointly, meaning that it passes to their spouse on first death and their children or beneficiaries on second death. Severing the tenancy of the property means that each partner owns a 50% share as 'tenants in common'. The will is written 'in trust' so upon first death, instead of leaving the share of the property to the surviving spouse, the assets are held in trust for the beneficiaries of the will. The surviving spouse has a 'life interest' or right of occupancy' and can live for life, or substitute it for another one.
Care Fees Benefit
If either partner needs care in the future, they only have interest in half the home, so 50% is immediately protected.
The deceased's share also cannot be used to fund care costs for the survivor. it is the most affordable was of helping you protect your home.
Should the survivor re-marry, the deceased's share cannot pass to another family. It is protected for their chosen beneficiaries.