The Flexible Asset Protector
How can I ensure that my share of the property eventually passes to my children if I die before my spouse/partner?
If I die first, how can I protect my share of my property from being used to pay for my spouses/partner's care costs later in life?
By Having a Property Protective Trust in your Will! (for couples only)
includes the following;
A Severance Of Tenancy (Tenants in Common) with a Lifetime Interest In Possession to your Spouse/Partner.
Most houses are now owned on a Joint Tenancy basis. If one partner dies, the survivor. becomes the sole owner. This rules out either partner gifting their share of the property to anyone else (e.g. their children). A common scenario is both spouses initially leave everything to each other but wanting to ensure that the children receive their rightful share if the surviving spouse remarries.
One solution is for the survivor to receive a lifetime interest in possession in the partner's share of the property with the value being maintained and ultimately passing to the children (a Property Protective Trust). The Trust allows the surviving partner all the benefits of occupation or to move to a different property giving flexibility and portability.
This is only possible if the property is owned on a Tenants In Common basis. As Tenants in Common, each spouse has their own seperate share which can be given away in their Will quite independently of each other.
This process may also be considered as a possible means of preventing government agencies acquiring the assets of the elderly if they come to depend on long term care.
These Property Protective Trusts are unlikely to provide any inheritance tax benefits and must not be confused with Nil Rate Band Trusts.