Protective Will Property Trusts
If you and your life partner are living together, whether it’s a marriage or civil partnership, and you want to leave something behind for your children and family, you should consider writing a protective property trust will. These wills are usually made by couples living together while both partners are still alive and capable of making their own decisions.
The protective property trust wills are means of protecting your home from long-lasting care costs should you need to be placed into a home. This usually happens after one of the partners dies. Then the local council has the legal right if the other partner should go into a care home, to seize and sell the property in order to cover the care costs. The amount that needs to be left in these cases is just £23,500. Needless to say, this is virtually nothing to pass on to children and grandchildren, especially compared to leaving a family home.
Now, trying to pass on your property to another person or trust just so you would avoid paying the long-term care costs is illegal. But protecting your assets and your children’s interests with a protective property trust will is legal. The partners who are living on the property as Tenants in Common need to state in their wills that upon the death of either one of them, their half of the property and assets is to be put into a trust fund for the other partner to use. After the other partner dies as well, the trust can be set up to be inherited by the couple’s children or other beneficiaries.
Other reasons for making this type of will and becoming Tenants in Common are saving inheritance tax if the assets are split below the nil-rate band. Will trusts are generally excellent means of protecting your property from further costs and leaving something valuable behind for your children. Care costs can go over the roof and if at least half of the assets are protected by the protective property trust will, there will still be something for the families to inherit. The surviving partner has the option of living in the house and moving the house with virtually no consequences for the children who are to inherit the property.
For any additional information contact The Will Associates by calling us on 0800 9500 700 to arrange a free, no obligation consultation at a time convenient to you and your loved ones, in the comfort of your own home.