A Property Protection Trust Will is a will designed to help protect an estate from potential future probate costs. It also helps ensure bloodline planning is achieved and removes any possible sideways inheritance issues through scenarios such as divorce. Such a trust will ring-fence property from creditors and remove it from possible assessment for long-term care fees.
The Trust also protects the interests of the survivor, by allowing them to live in the property until death or, if required, until he/she cohabits or remarries. See the five threats here.

The rules of the trust also allow the survivor to sell the property and buy another should they so desire. Should the survivor need long-term care the local authority cannot include the share of the property held in trust in their assessment as it is owned by the trustees of the trust. On the death of the survivor the share owned by the trust is passed to the beneficiaries.

Example
Mr and Mrs Brown own their house in joint names and have other joint savings. They wish to ensure that their respective half shares of their estate will pass to their children whilst ensuring the survivor has the protection of living in the property for the remainder of their life. They also wish to ensure that if the survivor requires long-term care, at least half the property is preserved for the benefit of their children.

If Mr Brown were to die first, his half share of the property will be left in a Property Protection Trust, and his wife will receive the remainder of his estate. Mrs Brown has a right to occupy the property as well as the option to move to a new house.  If Mrs Brown later requires long-term care, Mr Brown’s half share of the property is retained in the Property Protection Trust and cannot be assessed as capital available to pay Mrs Brown’s care fees. On her death, the property protection trust comes to an end and the half share of the house or the sale proceeds paid, will be transferred to the children, free from any Capital Gains Tax.
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