A Property Protection Trust is designed to protect half of the property on the first death. The property is owned by the two 'tenants in common' in equal shares. When the first tenant dies, their share of the property is left in trust to their children. The surviving spouse will retain a 'life-interest' in the property and will therefore continue to live in it for the rest of his or her life. If he or she subsequently goes into care, the deceased person's share will not be used to pay for this. If the surviving spouse then dies any charge on the property from Social Services can only be taken from the half they own, the other half will automatically go to the children. A Property Protection Trust is therefore a good way to protect half of the value of the property being eroded after both tenants in common die while still retaining a life interest for the surviving spouse while they are alive.
How can we help?
Please keep in mind there are varying conditions for the life interest of a Property Protection Trust. These can be as flexible as the clients wants. As with all trusts offered by Nurture Estate Planning, we will look at each client's circumstances individually and tailor a solution to meet their particular requirements.