You can set up a property protection trust for a variety of reasons.
One of the biggest benefits is that it can help you protect your property from being included in your estate for inheritance tax purposes.
This is because the property is no longer legally owned by you.
Instead, it is part of the trust, which is a separate legal entity.
The value of the property is therefore not counted as part of your estate when calculating inheritance tax liability.
Another benefit is that a property protection trust can help protect your property from being used to pay for long-term care costs.
If you need to go into a care home and your assets are assessed to pay for the costs, the property owned by the trust may be protected.
This is because, as before, the value of the property does not belong to you anymore.
Your beneficiaries are the beneficiaries of the trust instead.
When you set up a property protection trust see here for putting a property in trust, you will need to appoint trustees to manage the trust.
Trustees have legal powers and are required to act in the best interests of the beneficiaries.
They will be responsible for managing the trust’s affairs, including maintaining the property and managing any income it generates.
Setting up a property protection trust is a decision not to be taken lightly. It’s crucial to seek professional advice to determine if it’s the right option for your circumstances. There are ongoing costs involved, including legal and administrative fees. Nevertheless, a property protection trust can be a useful way of safeguarding your property while ensuring your loved ones benefit from it. It can help reduce inheritance tax liability, protect your property from being used for long-term care expenses, and provide peace of mind that your assets are secure. But, seeking professional advice and carefully considering the decision before proceeding is essential. This way, you can make an informed decision and ensure the trust is tailored to meet your specific needs.