Property Trusts

For most people, their property is their most valuable asset, and so they want to protect it. At Taylor Bracewell, we have a team of experienced property trust solicitors who can help you protect your property.

What is a property trust?

A property trust is part of an Asset Protection Trust Will and ensures that your assets, or share of joint assets, are received by the beneficiaries you choose, regardless of the order of death.

What is joint property ownership?

There are two different ways in which a property can be owned jointly;

Joint Tenants – This is when one owner dies and their share of the property automatically passes to the surviving owner, regardless of what the deceased’s will says. The remaining owner then owns the whole house and can dispose of it however they wish, be it during their lifetime or in their will on their death.

Tenants in Common – This is where each owner has their own share of the property which they can leave in their will to whoever they want, irrespective of whether they die first or second.

Why protect your property?

The two most common reasons why people wish to protect their assets are to protect them against care fees or to protect assets when entering a second marriage.

1) Protection from Care Fees

Many people are concerned about what happens if they need to go into a care home and fear that their home and savings will be taken away from them to pay for their care.

At present, if a person enters full-time care and has property, savings, and investments worth more than £23,250 then, generally, they will have to pay the cost of their care themselves (figures correct as of 2017/2018).

Couples often make wills that leave their whole estate to each other on the first death. This means the remaining party then owns everything. The problem with this is if the remaining party then goes into a care home all their assets, including those of the deceased, can be taken into account towards their care fees.

Asset Protection Trust Wills can ensure that your partner can still use and benefit from your assets if you die first, but if they do need full-time care your assets will not be used to pay for it.

2) Second Relationships

It is common for a couple to make wills leaving their estate to each other on their first death and to their children or other family on the second death. However, this may not be suitable for couples who are in a second relationship, particularly if they have children from a previous relationship.

If a couple makes wills leaving their assets to each other on the first death, then the widow will own all of the combined assets. The problem with this is the widow is free to change their will at any time and the first party’s chosen beneficiaries could be cut out completely. The widow could remarry which would mean their will would automatically be revoked and, again, the chosen beneficiaries of the first to die would lose out.

For more information, download one of our guides. Alternatively, give us a call on 01302 341414 for our solicitors in Doncaster or 0114 272 1884 for our solicitors in Sheffield and our friendly team will be happy to have a chat with you.

What other types of trust are available?

There are numerous types of trust available, the most common types are: