Property Protection Trust Case Study
Mr & Mrs Jones
– Property Protection Trust Case Study
Mr and Mrs Jones wanted to ensure that their children were able to inherit something upon their passing – even if one of them required long term care, but also wanted to ensure that the surviving spouse still had the home that they had lived in for thirty years without being forced to move.
Mr and Mrs Jones own their house in joint names and have other joint savings. Mr & Mrs Jones want to ensure that their respective half shares of the house ultimately pass to their children whilst ensuring the surviving spouse has the protection of living in the property for the remainder of their lifetime. They also want to ensure that if the surviving spouse requires long term care, at least half the property is preserved for the benefit of their children.
On the death of the first spouse, their half share of the property is placed into a property protection trust, with the remainder of the estate left to the surviving spouse. The surviving spouse has a right to occupy the whole of the property together with the ability to move house. If the surviving spouse requires long term care the deceased spouse’s half share of the property is retained in the property protection trust and cannot be assessed as capital available to pay care fees. Even if Mr and Mrs Jones’s children are made bankrupt, become divorced or predecease the second parent, the surviving spouse’s ability to reside in the property is secure. On the death of the second spouse the property protection trust comes to an end and the half share of the house transferred (or the sale proceeds paid) to the children free from any Capital Gains Tax.
We Ensure that your property is owned as Tenants in Common not as Joint Tenants
We create a Property Protection Trust within your Will
The Trust gives the surviving spouse right to remain in their home
Not adverse for inheritance tax as Trust is counted as part of the estate of the surviving spouse
Trust does not come into existence until the death of the first spouse - can be changed anytime
The surviving spouse wants to move home – no problem. The home can be sold and a new home purchased – if downsizing any excess money would be shared between the surviving spouse and the trustees.
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