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 that should not be taken lightly. Seek professional advice to determine if it is right for you. Consider ongoing costs, such as legal and administrative fees. A property protection trust offers several benefits. It helps reduce inheritance tax liability, safeguards your property from long-term care expenses, and provides peace of mind. Nevertheless, consult with professionals and carefully consider your options before proceeding. This ensures that the trust aligns with your unique needs and requirements