Protective property trusts (PPT)

Why we do Protective Property Trusts

The Protective Property Trusts (PPT) is the most effective trust for a couple who jointly own or rent a property and have concerns about interventions in the estate after death.

What we do

The Protective Property Trust (PPT) guarantees the new Inheritance Tax Law can be claimed. This is the most effective trust for a couple who jointly own their property and worry about possible ‘third party intervention’ in their estate and ‘sideways disinheritance’ from re-marriage and new partners through generations.

The PPT protects the half share of the house of the first person to pass, by putting it into a trust for your beneficiaries. We include a ‘Right to Occupy’ trust with life interest at no additional cost. Main Benefits of Protective Property Trusts. In order to set up this trust, the property must be held as ‘tenants in common’ and we carry out a ‘severance of tenancy’ straight away. The property is then owned 50/50 and upon first passing, the remaining share of the property is put into the trust. The will specifies the beneficiaries. The surviving partner has the right to live in the ‘main’ home until they pass, as a ‘life tenant’.

On the second passing, the second half of the home passes to the beneficiaries. In the meantime, as the surviving partner does not own the deceased’s half share of the property, this value is protected. The share of the house/capital held in the PPT throughout the lifetime of the survivor, cannot be accessed by ‘third party intervention’ or by any other person. This means beneficiaries will own the half share of the house in the trust after the first passing. The survivor has a life interest in the property.

If the property is rented, the survivor receives the income.

Who we do it for

Couples who own a main residence and wish to leave their home to their children.

The results you can expect

Half of any excess funds due can be invested directly by the trust and the survivor can benefit from the income. The Protective Property Trust (PPT) protects the deceased share for the beneficiaries. This trust ensures the Resident Nil Rate Band (RNRB) tax claims can be made. This is accepted by the tax authorities.

What to do now

We would love to help you so please call Sarah on 020 3858 0307  to book your free phone consultation or to arrange for Jeff Meers to visit you at your home or if you prefer at our office by Victoria station.

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