If you want to safeguard your property, look into the protective property trust; explained this week by Prestige Tax and Trust Services.
Why Do You Need to Protect Your Property?
Usually, the standard practise for a property owner who wishes to detail what they wish to happen to their property once they have passed away, is to do so in their will. This becomes a problem when a home is jointly owned as joint tenants. In cases such as these, the property’s ownership automatically passes to the surviving joint owner.
Why is this a problem? Well, if you wish for your property to eventually pass to your surviving children, it may not do so, if it passes on to the surviving joint owner. They could remarry, and leave their estate to their future partner. In cases such as these, the property could pass to the children of the second relationship, and the children of the dead partners may end up with nothing.
What is a Protective Property Trust?
In order to avoid such an event occurring, you need to make a protective property trust in your will, which enables you to safeguard your property, and activates when the Will itself comes into force.
So how do you do this? Well, the trust appoints a life-tenant; often the spouse or partner. They have the right of residence within the property for the rest of their life. Furthermore, a clause can be inserted so that life interest ends with remarriage.
How Does a Protective Property Trust Protect Your Property?
Therefore a protective property trust protects your children’s rights to your home, because it changes joint tenancy to Tenants in common. This means that you and your partner each own half of the property, and can individually do whatever you want with your own half; which you then consequently outline in your will.
This also means that should a surviving partner go into care, your children’s property continues to be protected. Essentially, because the surviving partner does not own your share of the property, the local authority cannot take it into account when making an assessment for care fees; protecting it for future beneficiaries.
Prestige Tax and Trust Services: Protective Property Trust Experts
Basically, because a protective property trust guarantees assets, such as your home, are released upon the death or remarriage of your surviving partner, each child or beneficiary receives the inheritance you want them to.
To ensure that your protective property trust achieves this aim, come to Prestige Tax and Trust Services. Market leaders in protective property trusts, we offer straightforward, professional legal advice to you in an uncomplicated, easy to take-in way, to make sure you are able to protect your children’s or other beneficiaries inheritance, once you pass away.