Lifetime Property Protection Trust

Lifetime Property Protection Trust 

This form of trust is available to individuals or couples who wish to achieve maximum protection for their property. The standard trust can be used where the estate value is under the Nil Rate Band allowance (if over NRB a consultation with our Chartered Tax Adviser will be required) and there are no further properties in the estate. 

There are many threats to a property throughout one's lifetime and after death. With appropriate planning one can better protect their assets, the most valuable of which may well be the family home.

 We can establish a lifetime discretionary trust - this is a £10 discretionary trust which has the ability to receive other assets. We will transfer the property into the trust, with family members (for example children) usually acting as Trustees. The Settlor (the person(s) putting the property in trust) retains the home as the principal private residence. Where necessary we will change the title at the Land Registry and make the appropriate Capital Gains Tax election to ensure there are no adverse taxation consequences as a result of this action. Our belt and braces approach to this service ensures we have studied every angle and use the appropriate experts to achieve the desired protection.

 There are a number of potential benefits to this service, including:

• Protection of the property from divorces within the family, as the trust can continue to run and hold property after the death of the Settlor(s)
• A reduction in professional probate fees as the property is excluded from any estate administration
• The trust ensures the property passes down the family to future generations
• The Settlor(s) retains the use of the property throughout their lifetime, including the sale and purchase of future properties (tax returns will be required should the trust become income bearing)
• Prevents property value forming part of children's estate for Inheritance Tax purposes by holding the property in trust
• Avoids Capital Gains Tax issues created by a straight forward gift to children
• The property can still be sold and another bought, with full access being retained to any surplus proceeds.

 The trust also has the effect of reducing the estate included in a 'means test' by a Local Authority, in the circumstance that the Settlor latterly requires long term care. A potential benefit of the trust is therefore ring-fencing the property from future care costs.

 Arrange a free consultation to see if this is the right solution for you.