Most people are concerned about care fees, and if you are a house owner then your house could be used to fund care fees in later life.
However, if you set up property protection trust and you don’t need care, on your death your share of the property can be protected and passed directly to your beneficiaries.
A property protection trust (PPT) is created when both owners of the property are alive. The ownership of the property is severed, so both own 50% of the property each. This is also known also as tenants in common.
On the first death, the property will go directly to the beneficiaries, but the surviving spouse has a right to occupy the property, or even substitute it for another one (based on the wishes of the diseased). If this wasn’t put in place and the surviving spouse went into care, then not just their share but all of the house could be used for care fees.
A property protection trust guarantees that at least half of the property will go to the beneficiaries. It will also protect a diseased spouse’s share of a property, if the surviving spouse re-married.