Protective property trusts are often sold as a way to "beat care fees". The honest picture is more useful: for the right couple, they're a sensible way to make sure each partner's share of the home reaches their children.
What it is
Each partner's will leaves their share of the home in a trust rather than to the other partner outright. When the first partner dies, their share goes into the trust. The survivor can usually carry on living in the home for the rest of their life, and when they die that share passes to the children or whoever the will names.
What it protects
- Care fees: if the survivor later needs care, the share in trust isn't theirs, so it usually isn't counted in the means test.
- Remarriage: if the survivor remarries and changes their will, the share in trust still goes to the first partner's children.
- Blended families: each partner can make sure their own children inherit their share.
What it doesn't do
- It doesn't protect the share of whoever needs care first while they're alive.
- It doesn't protect the survivor's own share of the home or their savings.
- It only works if it's set up properly in both wills while both partners are well, and usually needs the ownership of the home changed first.
- The survivor no longer owns the whole home outright, which can make later decisions, like moving, a little more involved.
Who it can suit
Couples who own their home and want to make sure it reaches their children, especially second marriages and blended families, or where one partner is more likely to need care later. It isn't right for everyone, and leaving everything to each other is still the best choice for some couples.
See what it could mean for you with the protective property trust calculator, or request a call back to talk it through.
Frequently asked questions
Is a protective property trust deprivation of assets?
A protective property trust is set up in a will and only takes effect on death, which is generally different from giving assets away during life. The council can still look at the circumstances, so it should be set up for genuine reasons and with proper advice.
Can the surviving partner sell the house if the home is in a protective property trust?
Usually yes, with the trustees' agreement, and the trust's share can be used towards a new home. The details depend on how the trust is written.
How much does a protective property trust cost?
It's normally part of a pair of wills drafted by a solicitor or specialist will writer, plus the cost of changing how the home is owned if that's needed. Prices vary, so ask for a fixed fee.
Does a protective property trust affect inheritance tax?
It can be set up so the surviving partner's right to live in the home keeps the inheritance tax position broadly the same as leaving it to them outright, but it needs to be drafted correctly.
Request a call back
Tell us a little about your situation and we'll call you, usually within one working day, to understand what you need. If it would help, we'll then put you in touch with a specialist, such as a solicitor who deals with care planning. We'll always tell you who they are before passing on your details. We don't give advice ourselves, and there's no obligation.