What is a Property Trust Will?
If you are worried about how paying care fees might impact on the size of your inheritance, a Property Trust Will is a means of protecting the value of your home.
While you cannot transfer a property into a Trust solely to avoid paying for long-term care, you and your spouse can include a provision in your respective Wills that when one of you dies, their share of the property will be left in a Trust for the survivor; and they will be able to continue living in that property.
Upon the death of the surviving partner, the share of the property can then be passed on to chosen beneficiaries.
For initial legal advice get in touch with our Wills and Trusts Solicitors.
Making a Property Trust Will
For many people who are making a Will, ensuring children and grandchildren get a fair share of their wealth after they die is a priority, so the prospect of paying expensive care fees and seeing your inheritance dwindle is a worrying one.
Making a Property Trust Will is therefore a way to get the peace of mind that you can safeguard the value of your property for younger generations of your family.
A Property Trust Will could be suitable for any couple who own their property as Tenants in Common, and are concerned about the prospect of needing long-term care in the future.
Upon the death of one partner, the Title Deeds of the property will be transferred to selected Trustees – which may be Executors of your Will and the surviving partner. They will control the Trust, while the surviving partner will have the legal right to continue living in the home.
Of course, some people might wonder why it’s worth doing this if they could simply leave their share to their children in a standard Will. However, a Property Trust Will gives you greater protection against potential future scenarios. For instance, what if your child wants to cash in on their share after the death of a parent? What if they became bankrupt?
A Property Trust Will ensures that circumstances such as these don’t actually affect what happens to the share, and also means they don’t have to pay Capital Gains Tax after the death of the surviving partner.
A Property Trust Will effectively ringfences the value of 50% of your family home, so it’s excluded when financial assessments for care home fees are being carried out.
For free legal advice call our Wills and Trusts Solicitors
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