Protective Property Trust
Often when a couple owns a house together, and one partner dies, the share of the deceased is automatically transferred to the surviving partner under the ‘right of survivorship’. Rather than the remaining property owner acquiring the share, The Protective Property Trust (PPT) is designed to ensure that a percentage of the property is transferred to the chosen beneficiaries selected by the homeowners.
At Paradigm, we can set up a PPT providing both homeowners are alive and hold property as ‘Tenants in Common.’ This is when both partners own undivided interest in the property, which becomes part of an estate when one dies (although this fixed percentage or proportional financial share of the property can vary).
Why would you not leave your surviving partner your share of the estate?
Control over ownership is particularly common if you or your partner have children from previous relationships. You can leave your share of the estate to your children or chosen beneficiaries, and they will receive the inheritance after the death of your surviving partner.
What about if you are the surviving partner and want to move house?
What happens when both partners pass?
The trust ends when the surviving partner passes away, and the property is left to the named beneficiaries in the will.
Let’s look at an example:
Mr and Mrs Smith are joint homeowners who have both previously married and divorced. Mr Smith has two children from a previous marriage, and Mrs Smith has one. They also have one child together.
Without a Protective Property Trust
What we recommend
To prevent this situation, Paradigm would help Mr and Mrs Smith to create a Mirror Will with a Protective Property Trust and sever the tenancy if needed. This measure ensures that the property ownership is divided in half, with both partners owning a fixed 50% of their property. In the will, we would create a ‘life interest’ for both partners, so rather than inheriting each other’s share, they would only give a full life interest to the surviving spouse.
With the trust in place
When do the children receive the inheritance?
Mr Smith’s children will only receive access to his trust upon the passing of Mrs Smith. Then, all beneficiaries will inherit according to the instructions of the will. Again, if Mrs Smith did meet a new partner or required residential care with the Protective Property Trust, Mr Smith’s half of the estate would be ‘ring-fenced’ (separated and protected) and, therefore, untouched.
With our continued support, we free you from the burden of worry and provide you with peace of mind that your assets will be inherited by your loved ones when you are no longer here.
At Paradigm Wills and Legal Services, we genuinely care about educating people on the importance of making a will. In an industry often loaded with complex legal jargon and a conveyor-belt mentality, we provide a paradigm shift in how we offer our wills services. We aim to supply fresh ideas, clear and straightforward explanations, and a service tailored specifically to you. With you at the centre, we strive to make the will writing process as transparent as possible.
Contacting us is free. Have a consultation or a home visit with one of our experts and discuss your options with no obligation.
Our experienced legal advisors are on hand to provide you with all the advice you need with writing a Will, guidance on establishing a trust, help with applying for probate, and arranging prepaid funeral plans.
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