A Lifetime Property Protection Trust (LPPT) enables you to provide a protective shelter for your home if you want to manage it separately from your other assets. An LPPT can be established if you own your home in your own name, or jointly with another.
An LPPT is an alternative way of managing your home, which offers the following benefits:
- Allows you to live rent-free in your home for the rest of your life
- Allow you to ask the Trustees to sell your home and buy a new one using the proceeds
- Protects the full value of your home for the next generation
- Allows the Trustees to sell your home on your death without the need for Probate
- Preserves your Capital Gains Tax exemptions up to 18 months after your death
- It can be easily closed after your death or ‘unwound’ during your lifetime if your circumstances (or the law) should change
However, it is a sophisticated arrangement that requires careful planning.
When we work with you to create your LPPT will you will be asked to name up to four Trustees. The role of these trustees will be to manage the trust during your lifetime and after your death. Part of our role is to help you choose Trustees who will be able to carry out these duties responsibly. Further, we will create guidance for the Trustees in line with your wishes on how your estate should be managed after your death.
It should be noted that this is a summary and is not intended to be a full explanation of the main features and benefits of the Lifetime Property Protection Trust (LPPT). When the value of assets being placed into an LPPT exceeds £325,000 (or £650,000 for a couple) you will also need specific Inheritance Tax advice, which may confirm that this product is not appropriate for you.
For general informational purposes only, not intended or to be taken as legal advice. To make sure this is appropriate for you please seek advice and contact us.