Property protection trust in wills and second property

Trusts Discussion
1

Good morning,
Am i correct in thinking that it’s not possible to set up a property protection trust in a will for a property that is rented?
The property was the main home initially.
Thank you

2

So far as I know a “property protection trust” is just a marketing term for a trust over a property.
I don’t any reason you can’t put a let property in a will trust. It depends what you are trying to achieve.

Andrew Goodman
Osborne Clarke LLP

3

Hi Andrew,
They are wanting to retain the property for their children, who are minors at the moment but more worried that if one of them were to die,they didn’t want the survivor to remarry and the house disappear to the new spouse.

4

Then yes, an IPDI to spouse (to use the spouse exemption), with reversion to the children is common in those circumstances and could include virtually any asset. If IHT is not an issue, it could be a discretionary trust for the spouse and children.

Andrew Goodman
Osborne Clarke LLP

1 Like
5

Are you referring to a trust set up under TA 1925. s33 or are you using the term “protective” in its normal sense?

I’m not sure that such a trust is preferable to the typical flexible life interest trust.

Malcolm Finney

6

Hi Malcolm,
I am using a flexible life interest trust, where the surviving spouse has a right to live in the property and any income but capital to be protected for children.
Thanks
Tina