Thursday 11th June, 2020
Do you have a property protection plan in place?
If you have been fortunate to find happiness through marriage the second time round, you and your new partner may be keen to protect any of your assets after you have passed away, to ensure that any children from any previous relationships an benefit from your respective wealth.
Or, your concern may be that when you pass away, you want to make sure that your partner has the security of living in the marital home, for the duration of their lifetime. To make sure that either of these scenarios are able to happen it is important to speak with a lawyer to create a well drafted property protection trust, this will ensure your assets are protected as well as looking after one and other once either of you has passed away.
A property protection trust acts as a legal mechanism and is contained within a last will and testament. The testator's share of a property is held in trust for the purpose of allowing any current occupant to continue residing in the property whilst making sure that the capital value is protected for the benefit of others. The trust will allow the surviving partner to reside in the marital home until their death and then pass the property onto any beneficiaries.
Benefits of a property protection trust
A property protection trust provides peace of mind for you and your spouse as it guarantees a home for you to live in upon the other persons' death, as well as ensuring that your children will still eventually benefit from your estate.
It is important to note though that through a property protection trust the deceased share in any property is protected in the event of the surviving spouse remarrying. It also protects the deceased share of the marital home from being factored into calculations for the long term care of a surviving partner.
If you have just remarried, it is important to ensure that you have revised your will, as a second marriage may invalidate the existing will. The benefit of revisiting your will is it will protect everyone involved and is a good opportunity to revise any arrangements previously made. It is important to note that putting a standard will in place will not always be sufficient enough, even if you and your spouse each leave everything to the other.
Without a property protection trust there is no guarantee that your wealth will be distributed as you had planned. Therefore it is important to seek legal advice, on setting up a property protection trust properly. Please contact CP Law Associates if you are looking for advice on setting up a property protection trust.