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Protective Property Trusts
There are essentially 2 different ways in which a couple or co-owners may own a property.
Joint Tenants:
Property is often owned on a beneficial Joint Tenancy basis. In this instance, the surviving partner would automatically become the sole owner in the event of a death, before any Will takes effect. This means neither partner can protect their own share of a property, or gift it to their children, or anyone else.
Tenants in Common:
If a property is owned as Tenants in Common, each individual is able to protect their share of the property for their children, or chosen beneficiaries. This share of the property would usually be held in a Protective Property Trust, providing a life interest for the surviving partner first, before ultimately passing to the children or other beneficiaries, after the second partner dies. The life interest protects the surviving partner, ensuring that they may remain living in the house for as long as they wish; or even to move on and buy an alternative property using that share to cover part of the purchase price.
A Protective Property Trust may also limit the scope for local, or government agencies seeking to acquire the assets of an individual, in the event they should require long term care in later life. If nursing care becomes necessary, it may thus be possible to protect, for their beneficiaries, more of the value they have worked hard to accumulate in their property.
In the event that a surviving partner were to re-marry after the first death, a Protective Property Trust would ensure their next spouse does not have access to the deceased partner's share, thus safeguarding their children's inheritance.
If you do own your home as Joint Tenants, we can provide you with a Severance of Tenancy agreement which, when signed by one, or both owners of the property, severs the tenancy and makes it possible for you to leave your share of the property, in trust, for your children, or other beneficiaries.
Don't leave it too late to think about a Protective Property Trust!
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