HOME PROTECTION TRUST

Putting your home into trust is not a step to be taken lightly, but can be a very wise move to protect it for the eventual beneficiaries from most eventualities; Including the possibility of losing it to pay for long term care fees, or Bankruptcy or divorce of a vulnerable beneficiary.

While your property is in trust you will be able to move house and the new property will be held in trust on the same terms. If you downsize the excess will benefit from the protection of the trust but can be released to you if you choose.

While the property is in trust (which is a discretionary trust) a potential beneficiary is not actually entitled to a specific share of the property, hence this value cannot be taken into account on divorce or bankruptcy of the beneficiary.

If the need for your long term care arises and the need for care was not foreseeable at the time the property was put into trust, the trust can not be seen as deliberate deprivation by the Local Authority who will also look at the other reasons for creating the trust.

The other reasons include the protection of assets for the beneficiaries regardless of their circumstances.

Once set up the trust does not have to have professional trustees, although this service is available if required for moderate fees. Otherwise the trust can easily be administered by family with you as one of the minimum of two trustees.

By transferring the property into trust now you are also simplifying the probate procedure. A Grant of Probate is not required to deal with the property on death as it is controlled by the trustees and does not form part of the estate for distribution purposes. This can also lead to a massive saving in probate fees.

Putting the property in trust now allows you to maintain control of the property during your lifetime but you will have clearly established who is to receive it following your death.

Unlike a Will a claim cannot be made against the trust under the Inheritance (Provision for Family and Dependents) Act.

At Richardsons Legal Services a free call is offered to discuss this in more detail with no obligation.

Just telephone Freephone 0800 014 0831