Early examples of trusts can be found in ancient Roman law. English trust law began developing during the Crusades in the 12th and 13th centuries and the underlying principles are long established. A Will trust is simply a trust created within a person’s Will.
There are different types of Will trusts designed to accommodate different situations. You will be given advice on the reasons to use a Will trust if it is appropriate.
Protective Property Trust
A real concern for many people is having to sell their home to pay for care costs in later life.
The most common type of property ownership of a family home is through Beneficial Joint Tenants, which means the house on the first death will usually pass to the surviving spouse, and to the children or chosen beneficiaries after the second death.
In the example above the surviving spouse has 100% of the property asset and if care is needed there may be nothing left for the children or beneficiaries to inherit.
By setting up a Protective Property Trust and changing the ownership of the property to Tenants in Common with a lifetime interest (right of occupancy) for the surviving spouse. On the first death whatever percentage split of the property is agreed (most commonly 50/50) that share moves into the Trust, the surviving spouse can continue to live in the property in perpetuity, if care is needed, only the percentage they have inherited is assessed for care needs, ensuring something is left for the beneficiaries to inherit.
Long Term Care
About 1 in 3 women and 1 in 4 men go into some sort of care. Statistically there is a greater than 50% probability that, for a couple, at least one party will require care.
With an aging population these figures are sure to rise in the future. Average Residential Care Home fees range from £25,000 to £50,000 pa.
70,000 people were forced to sell their homes in 2007 to pay for care costs. Anyone with capital assets above £23,250 is required to fully fund their own care
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