Protective Property Trust Wills Resources
Arranging a straightforward Will is advisable so that your assets end up where you want them to go and for many people that is sufficient.
However, many people are worried about their home being at risk if they go into care.
There is a cost effective solution to protecting some and perhaps all, the value of your home.
The solution is a Protective Property Trust Will.
How Does A Protective Property Trust Will work?
The terminology for Scotland and England & Wales is slightly different but a Protective Property Trust works in a very similar way.
Most properties when they are bought are bought in such a way as they are jointly owned. In Scotland this is known as the titles having a Survivorship Clause and in England & Wales the ownership is known as Joint Tenancy.
When one owner dies, the ownership of the whole house passes to the survivor.
What is the Alternative to Joint Ownership?
It is possible to change the title so that each partner owns a defined share, usually 50%.
This is known in Scotland as "Evacuating the Title" and in England & Wales as "Tenants in Common".
When one partner dies, they have the ability to leave their share to whomever they want. Ownership does not automatically pass to the surviving partner.
How Can This Protect Against Care Costs?
Instead of arranging a standard Will where the share of the house would pass to the survivor, Wills are drawn up to include a Trust.
When a partner dies, their share of the property passes into the Trust.
Property passing into a Trust means that the beneficiaries can still enjoy the benefit of the home (including the value realised when it is sold) without actually personally owning it.
This means that the surviving partner can be a beneficiary of the Trust but not personally own the other half of the property. Their right to live in the house is protected.
However, because they do not personally own their deceased partner’s share of the house, it cannot be included in any assessment with regard to liability to pay for care.
How Might The Whole Value Be Protected?
The guidelines for Local Authorities when it comes to assessing whether assets are taken into account are known as the CRAG Regulations.
Section 7.019 of the CRAG Regulations confirms that the value of a half share of a house is effectively NIL for the purposes of assessment for care. There is therefore the possibility that the value of the surviving partner’s share is effectively nil when it comes to assessment.
A Protective Property Trust Will can be arranged on-line.
At £199, it is a very cost effective way of protecting at least half of your home against care costs.