A property trust protects your family home from inheritance disputes and unforeseen deductions, giving you the power to decide who inherits your share of the property.
If a property trust is how you’d like to secure your home’s future for generations to come, simply complete the form, and one of our solicitors will be in touch to discuss how we can support you.
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PROPERTY TRUST
A property trust is designed to safeguard the value of your primary residence while providing peace of mind for your family. It is particularly beneficial for jointly owned homes, allowing each owner to pass on their share of the property to chosen beneficiaries, while ensuring the surviving partner’s right to remain in the home is protected.
To establish a property trust, joint ownership of the home is converted to tenants in common, giving each owner a 50% share. When one owner passes away, their half of the property is placed into a trust for their beneficiaries, such as children or other loved ones. The trust ensures that the surviving partner retains secure rights to live in the home, while the deceased’s share is preserved for their designated beneficiaries.
OUR EXPERIENCE
Our STEP-recognised solicitors have extensive experience crafting tailored wills and establishing property trusts that reflect your needs. By working closely with you and your family, we ensure your wishes are accurately represented and upheld, providing peace of mind that your most important asset, your home, is protected.
We understand the unique needs of blended families and work to structure property trusts that preserve inheritance rights for children from previous relationships while safeguarding the surviving partner’s right to remain in the home. Our expertise also includes navigating the complexities of care fees and tax implications, helping to preserve your property’s value as part of a long-term estate plan.
At every stage, we offer clear, comprehensive advice tailored to your priorities, giving you confidence that your loved ones will benefit from a well-structured and secure estate plan. We guide you through these important decisions with clarity and care, ensuring the best possible outcome for your circumstances.
PROPERTY TRUST
Not all trusts are created equal—each type is designed with a specific purpose in mind and offers unique advantages and limitations. Understanding these distinctions is crucial to selecting the right trust structure that aligns with your personal goals and circumstances.
Some trusts may provide enhanced control over assets, while others focus on tax efficiency or protecting the interests of beneficiaries.
The table below summarises the key benefits and limitations of property trusts compared to other common trusts, helping you make an informed decision about which option best meets your needs.
| Benefits | Limitations |
|---|---|
| Inheritance security: A property trust protects half the value of your home for your beneficiaries, ensuring their inheritance. | Main residence limitation: Property trusts apply only to a main residence. A traditional trust may offer more benefits for those with additional properties. |
| Mortgage flexibility: Allows the inclusion of a property with an outstanding mortgage. | Joint ownership requirement: Separating a joint ownership agreement can seem daunting. Our team will assess your circumstances and suggest alternatives if needed. |
| Care fee protection: Prevents the home from being fully assessed for care home fees, helping to preserve its value. | Ongoing management: Property trusts require legal setup and ongoing management. Our team can simplify this by acting as a professional trustee service, handling all legal documentation. |
| Blended family benefits: Suitable for blended families, securing inheritance for children from previous relationships. | Limited asset distribution: Does not provide flexibility for asset distribution; this can be found in a discretionary trust or a charitable trust, depending on your intentions. |
| Peace of mind: It helps mitigate tax liabilities by facilitating controlled asset transfers across generations. | Vulnerable beneficiaries: Property trusts may not be suitable for beneficiaries with vulnerabilities or disabilities. A Disabled Person’s Trust is a better option in such cases. |
Frequently Asked Questions
They are ideal for couples who jointly own property—especially those in blended families—seeking to protect their children’s inheritance and ensure housing security for the surviving partner.
Yes, a property trust can be structured to include properties with outstanding mortgages, providing flexibility for many homeowners.
Yes. You must convert joint ownership to ‘tenants in common,’ so that each person legally owns a defined share of the property, usually 50%.
It can help protect half the value of your home from being fully assessed for care home fees, but it’s not guaranteed. It should be part of a broader estate planning strategy.
Yes, but only if the trust terms allow it. Typically, the trust ensures they can continue living there, but provisions can be made for selling and downsizing.
Not usually. For beneficiaries with disabilities or specific care needs, a Disabled Person’s Trust may provide more appropriate protection and flexibility.
No, it typically applies only to the main residence. Other properties should be managed through alternative trust arrangements.
Absolutely. You can update your will as circumstances change—such as entering a new relationship, purchasing property, or changes in beneficiary needs.
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