Understanding Property Protection Trusts UK | London Will Writing
Protecting your home and estate is one of the most important aspects of planning for the future. One of the most effective tools for doing this is a Property Protection Trust (PPT). These trusts are especially valuable for homeowners who want to ensure their assets are preserved for loved ones and shielded from long-term care fees.
At London Will Writing, we regularly support families across Potters Bar, Hertfordshire, London, and Essex with Property Protection Trusts tailored to their specific needs.
In this article, we’ll explore how they work, why the structure of your home ownership matters, and how they can secure your legacy.
What Is a Property Protection Trust?
A Property Protection Trust is a legal arrangement written into your will. It allows you to protect your share of the family home after your death, ensuring it passes to your intended beneficiaries rather than being lost to care home fees or redirected through remarriage.
Often referred to as a Life Interest Trust, the structure provides the surviving partner with the right to live in the property for life while ring-fencing the deceased’s share for their children or chosen heirs.
Why Long-Term Care Fees Are a Concern
Many people are unaware that their home can be included in local authority means testing when assessing care home funding. If one partner passes away and the surviving partner later needs residential care, the full value of the property may be assessed—unless protective measures are in place.
A Property Protection Trust helps to mitigate this risk. By safeguarding the deceased partner’s share, that portion is not considered in financial assessments for care costs, which means it remains preserved for future generations.
This is particularly important in areas such as London and Hertfordshire, where property values are high and care fees can quickly erode a lifetime’s worth of savings.
The Role of Tenants in Common
The foundation of a Property Protection Trust lies in how you own your home.
Most couples in the UK own their property as joint tenants, meaning the property automatically passes to the surviving partner upon death. While this may seem convenient, it provides no asset protection and gives full control to the survivor—who could remarry or revise their will.
To use a Property Protection Trust effectively, the ownership needs to be changed to tenants in common. This legal adjustment allows each partner to own a defined 50% share of the property. Once ownership is split, each partner can dictate what happens to their share in their will.
How a Property Protection Trust Works
Here’s a simplified overview of the process:
Change Ownership to Tenants in Common: Each partner owns a 50% share of the property.
Include the Trust in the Will: Upon the first death, that share goes into a trust instead of to the surviving partner.
Life Interest Granted to the Survivor: The survivor can live in the home for life, but cannot sell or bequeath the full property.
Beneficiaries Inherit Upon Second Death: When the surviving partner passes away (or earlier if they move), the original 50% share is transferred to the named beneficiaries, usually children.
Who Benefits Most from a Property Protection Trust?
This type of trust is particularly useful for:
Couples worried about future care fees
Families with children from previous relationships
Individuals planning to remarry
Homeowners wanting long-term control over inheritance
Protect Your Legacy with London Will Writing
At London Will Writing, we’ve been helping clients protect their estates for over 17 years. Our team offers in-home and online consultations throughout Potters Bar, Hertfordshire, Essex, and Greater London.
To find out if a Property Protection Trust is right for you, get in touch for a free, no-obligation consultation.
Call: 01992 472475 |01707 800363
Email: info@londonwillwriting.com
