The Goodwills Protective Property Trust
Common reasons to put a Property Trust in a Will
To protect each Testator's share of the property for their chosen beneficiaries, and
To give a life interest to the survivor so that they are able to continue to live in the family home and giving them the opportunity to downsize or move property too.
What are the main features of a Protective Property Trust?
- A couple wants the survivor to be able to continue living in their house after the first death. This might be for a set number of years, until they remarry, or until the survivor dies.
- To protect the childrens' share if the survivor remarries, changes their Will, has to go into residential care, has a dispute with the first testators' chosen beneficiaries after death and a long list of other reasons why the estate might have been diminished.
Why should I consider a Protective Property Trust?
If you have children and you want them to eventually inherit the house, however you would want your spouse or partner to continue living in the home until they die.
Even if your spouse or partner does not own the property, or the person you want to live in the property is not your spouse or partner the property trust can still be an effective solution.
Severance / Declarations of Trust / Transfers of Equity
Most couples own their property as joint tenants which means on first death the property will transfer to the survivor regardless of the Will. When we set up the property trust we will change the type of ownership to tenants in common, where you both own a proportion of the house, usually 50% each.
Sometimes couples wish to formalise their respective shares. This can be done with a Declaration of Trust, which we are able to set up for the clients. This allows each person to define the share of the property that they own.
We are also able to add a person onto a property. This is called a transfer of equity.
Taxation Treatment of the Trust
The property trust is tax advantageous. We will let you know the potential tax implications based on your individual circumstances.
Get professional legal advice based on your exact personal circumstances
This is a concise summary of the Protective Property trust, and you should seek professional advice before making a decision to create a Trust.
Goodwills Legal Services Ltd can create a Protective Property Trust, act as a professional Trustee if you require it, and can provide information based on your specific individual circumstances. Goodwills Legal Services Ltd is a STEP member accredited firm and is regulated by law, by the CLC.
Goodwills Wilts and Glos can provide a home visit service within many parts of Wiltshire and Gloucestershire or you can visit a senior client consultant in their offices in Malmesbury. Please contact us for an initial consultation or should you have any questions.