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 Plan for the future, protect your interests and preserve your wealth
Property Life Interest Trust Wills are becoming increasingly popular among couples due to the desire to preserve family assets for younger generations. But many are not familiar with these types of wills or realise their benefit until speaking with a solicitor.
Property Life Interest Trust Wills can be of particular benefit to couples considering planning for future care and preservation of assets. Specialist advice on Property Life Interest Trust Wills can provide for both protecting the financial position and living arrangements of the surviving spouse, as well as protecting assets for future generations. For couples with children from a previous relationship, Property Life Interest Trust Wills can also prove an effective legal solution.
Taking advice and making early decisions
to plan effectively
It is often the case that a couple’s main asset is their family home, and many are conscious of this when considering planning their estate and inheritance for their loved ones. However, many couples can limit their ability to effectively plan and preserve their estate, or limit their available options for this, if planning their estate is left too late. This is certainly the case in respect of how their home will be treated upon death. The earlier advice is sought, the better in this regard.
How your property is owned is important
Property can be held jointly in one of two
ways. Property held as “Joint Tenants” will pass automatically to the surviving owner under survivorship rules whereas, property held as “Tenants in Common” will pass under the terms of a will. For couples to effectively plan their estate, it is often necessary for their main residence to be owned as Tenants in Common, providing each with a percentage share ownership which can be directed into a Trust upon death.
What is a Property Life Interest Trust Will and what does it do?
A solicitor is able to re-organise a couple's ownership of a property alongside preparing a will for you, so as to ring fence each individual's property share in a Trust for future generations and identified beneficiaries. The surviving spouse/partner is protected by having a life- time right of residence in the property and can be one of the trustees (managers) of
the Trust.
Therefore, the gift of your respective share
in your principal residence at death is made to your trustees on trust and is subject to the surviving spouse/partner's right to live in the property for their lifetime. The Trust can be flexible in that the surviving spouse/partner will be able to move to another property using all or part of the value of the property.
Any surplus capital not used in the purchase of a new property can be invested and the income can be paid to the surviving spouse/ partner for their lifetime. The surviving spouse
or partner can decide to make gifts to the family if they do not need the surplus capital or income.
Property Life Interest Trust Wills are very flexible, with the surviving spouse/partner even able to rent out the property and receive the rental income.
These types of wills and arrangements can often be recommended where couples (married or unmarried) wish to plan for future care and preservation of assets for future generations and/or provide for children from a previous relationship, whilst at the same time providing security and piece of mind to the surviving spouse/partner.
Speak to an expert from Holmes & Hills Solicitors
It is always a good idea to take advice when thinking about planning for the future, planning your estate and planning for care. When considering whether Life Interest Trust Wills are appropriate for your circumstances and wishes, your solicitor will also consider your Inheritance Tax position. As mentioned, it is advisable to seek advice sooner rather than later to ensure all legal solutions and options remain available to you.
For expert advice on planning for the future, contact Holmes & Hills on 01787 275275 or email advice@holmes-hills.co.uk and organise to speak with one of our specialists from your local Holmes & Hills office.
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