A Protective Property Trust (PPT) is a legal arrangement that allows you to protect your property from being taken away after your death. It enables you to keep control of your assets and make sure they are passed on to the people or organizations that you choose. With a PPT, you can ensure that your property will be distributed according to your wishes, even when you are no longer around. The trust is an effective way of protecting your estate from tax liabilities and creditors, while also providing peace of mind for those who will inherit it.
Tenants in common rather than joint tenants
Owning residential property jointly is a popular option for many couples, but there are important considerations to be aware of when deciding how to hold title. When held as joint tenants, the property passes automatically to the surviving owner upon death; however, when held as tenants in common, it can be passed on through a trust or will. This is an important distinction that can have a significant impact on the future of your property and your family’s financial security. By understanding the implications of holding title as joint tenants versus tenants in common, you can make sure that your residential property is owned and managed in a way that best meets your needs and those of your loved ones.
The right to occupation for the surviving spouse
When a person passes away, their property can be divided in two ways. One half of the property can be placed in a trust, while the other half is given to the surviving partner. This allows for the surviving partner to have the right of occupation over the property, while also ensuring that it is managed and maintained properly.
The trust also ensures that any future heirs or beneficiaries are taken care of financially. This way, the deceased’s wishes are honored and their assets are distributed according to their wishes. In this way, placing one-half of a deceased person’s estate into a trust provides peace of mind for both the surviving partner and any future heirs or beneficiaries.
Chargeable Lifetime Transfers
The transfer of property into a trust upon the death of an individual can be a difficult process. Unfortunately, such transfers may also be classified as “Chargeable Lifetime Transfers”, which means that they are subject to certain fees. These fees can be quite costly and may create an additional financial burden on the family or estate of the deceased. It is important to understand the implications of such transfers in order to ensure that you are able to make informed decisions about how best to handle your property and assets after death.
Seek professional advice
When it comes to dealing with matters involving death, property or trusts, it is always best to seek professional advice from a STEP or IPW Qualified Practitioner. These practitioners are experienced in estate planning, inheritance tax planning and trust management. They can help you understand the legal implications of your decisions and ensure that all documents are properly prepared and executed. By seeking professional advice from a qualified practitioner, you can be sure that your wishes will be carried out in accordance with the law.
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Vikki – Chief Guardian
