A Property Protection Trust Will (or PPT Will) provides a protective shelter after your death for the value of your home or other property that you may share with another person, for example a spouse or partner.
A PPT Will can be used by anyone who wants to preserve the value of their share of their home for their beneficiaries. A PPT Will can be created if you own your home in your own name, or jointly with another. This property must be owned as Tenants-in-Common, which is a particular legal arrangement. This arrangement can be created at the time of setting up the PPT Will if it doesn’t already exist.
When a PPT Will is created you will be asked to name up to four Trustees and these individuals will be responsible for managing the trust after your death. Guidance for these Trustees will be created, usually in the form of a Letter of Wishes, so they are able to carry out their duties in accordance with your wishes.
The Benefits of a PPT Will
- It allows your co-owner, or anyone else of your choosing if there isn’t a co-owner, to live rent-free in the
property for the rest of their life. Alternatively they can take a lifetime income if the property is sold.
- If your co-owner chooses to move it gives the Trustees power to sell the property and buy a new one using the proceeds.
- It can protect the value of your estate for your future beneficiaries.
- It can ring-fence the value of your estate should the surviving co-owner need to pay care fees.
- When the property is sold it allows Capital Gains Tax exemptions to be kept.
- This form of Trust can be closed easily following the co-owner’s death and sale of the property.
For general informational purposes only, not intended or to be taken as legal advice. To make sure it is appropriate for you please seek advice and contact us.