Secure Your Home with Property Protection Trust

At MWQ Estate Planning, we are committed to delivering sophisticated Property Protection Trust solutions tailored to your individual needs.

What is a Property Protection Trust?

A Property Protection Trust is a specific type of trust arrangement, primarily aimed at
protecting your property – often your family home – for the benefit of your chosen beneficiaries.

This type of trust is an effective tool to manage and safeguard your property assets, ensuring they are passed on according to your wishes.

Benefits of Property Protection Trust

Asset Protection

The trust helps protect your property from potential future risks, such as sideways disinheritance or divorce.

Control Over Beneficiary Designation

You have the ability to specify who will benefit from your property, and under what circumstances, ensuring your assets are distributed according to your wishes.

Mitigating Inheritance Tax Implications

By placing your property in a trust, you can potentially mitigate certain inheritance tax liabilities, depending on your specific circumstances.
 

 

How Does Property Protection Trust Work?

A Property Protection Trust is created within your Will and becomes effective on your death. This means you can continue to live in the property and use the property as your own for the rest of your life whilst ensuring that your home is protected after you pass away.

Suitability of Property Protection Trust Work

Property Protection Trusts are particularly beneficial for:

✔️ Homeowners seeking to secure their property for their children or other beneficiaries.
✔️ Homeowners seeking to protect their home from potential third parties.
✔️ Those looking to have a structured plan for their property after their passing

Safeguarding the Surviving Spouse's Residency

A Property Protection Trust can be used to provide security and peace of mind to a surviving spouse, civil partner or cohabitee. The trust terms are explicitly crafted to ensure that the surviving spouse or partner’s right to reside in the property is legally protected.

This means that, as long as the conditions of the trust are met, the surviving spouse or partner cannot be evicted or forced to move out by the trustees. They are known as the “Life Tenant”.

It's a safeguard that not only secures a place of residence for the life tenant but also
respects the settlor's wishes in maintaining the family home. This arrangement is particularly beneficial in ensuring that the life tenant has a stable and secure living environment after the settlor's passing, while also preserving the property for future generations.

It can also be used by a single person to ensure that an individual such as an adult child or vulnerable family member has a guaranteed place to live after they have passed away in the same way.

Handling Property Sales within the Trust

If circumstances arise where the life tenant wishes to sell the property, the trust is structured to accommodate such a decision. It allows for the sale of the property, with the option to either downsize to a more suitable home or purchase a new property, which then becomes part of the trust's assets.

This flexibility ensures that the life tenant’s needs are catered to, while still securing the
value of the estate for the beneficiaries.

Trust Administration Post-Property Sale

In cases where the property within the trust is sold, the administration of the trust ensures that the proceeds are managed in line with the trust’s objectives. This may involve reinvestment of the funds or holding them within the trust for future distribution.

The trustees play a key role in this process, making decisions that align with the best
interests of both the current and future beneficiaries.