What is a trust?

A trust is a way to set aside money or assets in your will to be looked after by a trustee – usually someone you trust – for the benefit of someone else. There are different types of trusts, but they’re often used to protect assets, support loved ones over time, or give you more control over how and when things are passed on.

What is a Vulnerable Persons Will Trust?

A Property Protection Will Trust (sometimes known as a life interest will trust) allows someone to benefit from your assets after you’ve died, without actually inheriting them.
It’s often used by people who jointly own a home so that they can have a say in what happens to their share of the property, whilst still allowing someone else, often a partner (known as the life tenant), to live there for the rest of their life.
This type of trust only comes into effect after
you’ve died.

HOW LONG DOES IT LAST?

A Property Protection Will Trust usually ends when the life tenant dies, but it can end earlier if certain conditions happen (for example, if they remarry). After it ends, your share of the property is passed on to the people you’ve chosen as beneficiaries.

What are the advantages of a Property Protection Will Trust?

• Helps protect your share of the home from being used to pay for care fees.
• Stops your share from being lost if your partner remarries or faces financial trouble after you’re gone.
• Gives you more control over who inherits your part of the property.
• It may be tax-efficient for married couples or civil partners if the share of their home passes directly to their children after the other spouse or civil partner has passed away.

N.B. Your estate might lose part of the Inheritance Tax allowance (called the Residence Nil Rate Band) if your home is passed on through a trust instead of going directly to your children.

What to do after setting up a Property Protection Will Trust?

- Sever the tenancy:
If you currently own your property jointly, you’ll need to change this to tenants in common. We can help with this process.

- Write a Letter of Wishes:
To guide your trustees on how you’d like them to act. We can help you do this.

- Tell your trustees:
Make sure they understand their role and where to find the paperwork.

- Review the trust now and then:
Check the trust still reflects your wishes.

If you have any questions about a Property Protection Will Trust please contact our team on 020 4525 3605.