For many people, the most valuable asset they own is their property and so often our clients are concerned with how they can protect their property after they have died.
The law provides a mechanism in order to allow somebody to benefit from an asset for their lifetime but to protect the underlying capital value of the asset for another individual.
This means that you can allow your partner or spouse, for example, to continue occupying your home, whilst ensuring that whatever share or interest you own in the property will automatically pass to the beneficiaries that you have specified when your partner or spouse dies.
This can be useful as you may wish to ensure that your own children will be the ultimate beneficiaries of your share of the property. This makes certain that your spouse or partner has a roof over their head for the rest of their lifetime. Various flexibilities can be incorporated into such a Trust if you wish, which will allow the Trust terms to be adapted as your beneficiaries’ lives change.
This has also become a very popular and legitimate way of planning for care home fees. You are not obliged to pay for care home fees for your spouse or partner and so again your own share of the property can be used as your spouse’s home whilst ensuring that the underlying capital of your share cannot be used to pay for their care.
Whilst this can be sensible planning for many individuals, it is also important that anyone who wishes to make a Will incorporating this type of Trust understands that such structures are complicated and advice will need to be taken by the individuals dealing with your affairs when the time comes. There will also be formalities to comply with at that time. In order for the Trust to be effective and provide the above protections it must be administered correctly, and so professional advice should be taken.
Should you wish to discuss including such planning in your Wills, please do contact us to do so, in order to ensure that your wishes can be carried out and your loved ones are protected.