A Protective Property Trust (PPT) can help you to protect your home and ensure that it's passed onto your loved ones, allowing them to benefit from your estate after your death without actually inheriting it. Suitable for couples who are concerned that one of them may need long-term care in the future, a PPT protects your home from being included in assessments to determine how much your spouse should pay for their long-term care fees, which can erode wealth and what your children will eventually receive as inheritance.
Trusts for disabled or vulnerable individuals enable the beneficiary to receive reductions in income and capital gains tax, in addition to exemption from inheritance tax in some cases. These trusts help to protect vulnerability and effectively manage the finances of the individual, whilst maintaining access to means-tested benefits and support, such as Attendance Allowance, Disability Living Allowance (DLA) or Personal Independence Payment (PIP).
A Family Protection Trust operates like a safety deposit box, in which you place your house and any other property, financial assets and investments. Whilst still maintaining the right to move or sell your property, or invest as you normally would, a Family Protection Trust allows for minimisation of inheritance tax, assists with eligibility for means-tested benefits or care fees, eliminates probate, and allows you to decide when your beneficiaries inherit, at the right time. Sideways disinheritance is also prevented, so your children are guaranteed their inheritance without your assets passing to a stranger if your surviving spouse was to remarry.
A Flexible Life Interest Trust, also known as Interest in Possession or IIP Trusts, is a trust where a beneficiary is left a lifetime interest in relation to a property, a share in property or an entire estate. Because the capital in the trust is not owned by the surviving spouse or partner, it cannot be given away to a new spouse or partner, and is not assessed for means-tested long-term care fees. Only after the death of the partner, would the income and capital of the assets pass onto other beneficiaries of the trust, such as your children. This trust type differs from a normal Life Interest Trust in that the trustees have the option to lend or give some of the capital from the assets to the surviving partner, rather than just the income from the assets.