Property Trusts - 8 reasons to organise a Property Trust
These are the main benefits of organising a Property Trust:
If you own a property jointly, you do not own 50% each as you may think. The rules dictate that if you die as a ´´joint Tenant´´ the other party will own the property outright. This causes a major problem if the survivor then enters a new relationship and potentially marries as the new partner could then inherit the property and upon their death the property go to their family and the family of the original owners get nothing. This is called sideways disinheritance.
If you are a sole owner with children and you are cohabiting and you want to ensure that upon your death your partner is not made homeless and wish to do so without leaving them the property in your Will (so as to ensure that your own children do not lose out on their inheritance), then a Trust enables the survivor to live in the property until they die or enter a new relationship or move a new partner in or vacate the property permanently thus protecting them but ensuring that your own children ultimately inherit the property in full, even if the survivor goes into care.
If you go into care then as a sole owner, your property may have to be sold to pay for your care fees. A trust, correctly set up, avoiding deliberate deprivation of assets rules prevents this.
If you are joint owners, as explained above, the survivor of the two will own all the property on the death of the first party. If the survivor then goes into care, the property could need to be sold to pay for those fees and potentially all of the value be lost in the process. our Trust strategy will prevent this, again, so long as the rules on deliberate deprivation of assets have not been broken.
After 5 years of being in place, a property Trust can potentially prevent a property from being lost if an owner goes bankrupt.
If a child inherits a property or a share of a property and then divorces, they could potentially lose 50% of their inheritance. Our Trust strategy can prevent this from happening.
If a child inherits a property or a share of a property and then goes bankrupt they could potentially lose 100% of their inheritance. Our Trust strategy can prevent this from happening also.
If you leave assets to your children in a Will the value of those assets will increase the value of your children’s estates and potentially cause an inheritance tax issue for your grandchildren. Our Trust strategy can avoid this completely.
In addition, if you were to use Thy Will Be Done to organise your trust, our Property Trusts are designed to ensure the following;
a) There is no limit on the value that can be placed in them - all other Trusts have a limit of 325k.
b) There are no taxes such as entry and exit charges or periodic charges.
c) The new residential band inheritance tax allowance is protected which is not the case with many other Trusts.
d) Our Trusts are updated every year with Annual trust minutes ensuring they are always completely up to date.
We have had many years´ experience with property Trust strategy and have 100s of clients and their families now enjoying the benefits they are providing. If you have any further questions, you can contact us to arrange a free consultation on 0800 668 1164 or tap the ‘chat now’ button in the bottom right corner to talk with a member of staff.