In a will, a Protective Property Trust is created. It’s a legal arrangement designed to protect a persons share of a property from potential future assessment for long-term care fees.
In a will, a Protective Property Trust is a specific type of legal arrangement designed to protect a person;s share of a property from potential future assessment for long-term care fees. It is usuallyincluded as part of a will as a type of legal structure. This combination is often referred to as aproperty protection trust will.
When one partner of a couple passes away, instead of their share of the property transferring
directly to the surviving partner, it goes into a trust. This trust is typically known as a “life interest
trust” in favour of the surviving partner.
This arrangement ensures that the surviving partner can continue to live in and benefit from the
property throughout their lifetime. They retain the right to live in the home, even though they
technically do not own 100% of the property - instead, it is considered among the trust assets and
co-owned by the trust.
The primary motivation behind this trust is to protect at least half of the property's value (i.e., the
deceased partner's share) from being considered as a financial asset if the surviving partner later
requires long-term care. This can help beneficiaries of the estate to avoid paying care fees from the
value of the property.
By doing this, the intention is to preserve as much of the property's value as possible for future
beneficiaries, usually the couple's children or other family members.
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