A Protected Property Trust is a legally binding instruction that can be implemented into your Last Will & Testament. It is designed to protect a property or share of it, against sideways dis-inheritance.  

What is sideways disinheritance we hear you ask?  

Sideways disinheritance is losing assets to another party at some point after you die. In many cases, this could be where the remaining spouse or partner meets somebody new and intentionally or unintentionally leaves an asset or assets to that person, which could jeopardise the gifts reaching your ultimate beneficiaries (e.g. children).  

How does a Protective Property Trust Work?  

On death, your portion of any chosen property you possess is transferred into a Trust. The Trust is established to hold the share of property for your ultimate beneficiaries (e.g. children) whilst at the same time creating a life interest for the property’s remaining owner (normally the remaining spouse, partner, or children). 

What does the life interest allow the remaining tenant(s) to do? 

  • To continue residing at the property for a term outlined in the Trust (usually until death but particular clauses can be included to terminate the Trust after a number of years or re-marriage). 
  • To earn income from the property by way of letting the property or its accommodation.  
  • To substitute the property for a new residence using the funds in Trust to help purchase the new property. In this instance the Trust would roll over onto the new property and the terms of the Trust would continue to apply.  

This Trust can also protect the share of property left in Trust from being considered for the remaining owner’s potential care charges.  

A Protected Property Trust is the product that can help fortify your ultimate beneficiaries’ future by shielding your share of what may be your main asset.