The trust, if you qualify, guarantees the new Inheritance Tax Law can be claimed. This is the most effective trust for a couple who jointly own their property and worry about possible 'third party intervention' in their estate and 'sideways disinheritance'. The PPT protects the half share of the house of the first person to pass, by putting it into a trust for your beneficiaries. The trust can protect your property for 125 years.
We include a 'Right to Occupy' trust with life interest at no additional cost.
The share of the house/capital held in the PPT throughout the lifetime of the survivor, cannot be accessed by 'third party intervention' or by any other person. This means beneficiaries will own the half share of the house in the trust after the first passing. The survivor has a life interest in the property. If the property is rented, the survivor receives the income. In order to set up this trust, the property must be held as 'tenants in common' and we carry out a 'severance of tenancy' straight away. The property is then owned 50/50 and upon first passing, the remaining share of the property is put into the trust. The will specifies the beneficiaries. The surviving partner has the right to live in the 'main' home until they pass, as a 'life tenant'. On the second passing, the second half of the home passes to the beneficiaries. In the meantime, as the surviving partner does not own the deceased half share of the property, this value is protected.
Half of any excess funds due can be invested directly by the trust and the survivor can benefit from the income. The PPT protects the deceased share for the beneficiaries. This trust ensures RNRB tax claims can be made. This is accepted by the tax authorities.