What is a Protective Property Trust (PPT)?

As we have mentioned in previous Blogs, there are many different types of Trusts that achieve different objectives. Today we will discuss Protective Property Trusts (PPT) which a Trust that is written into wills.

How does a PPT work?

Generally, most couples that own a property together own it jointly. This means both individuals essentially own the property ‘100% each’ as it passes to the survivor completely if one of them passed away. Once the survivor owns 100% of the property, it is open to certain risks which can be avoided by taking advantage of a PPT.

For a PPT to work, we must first change the way the property is owned from Joint Owners to Tenants in Common. This means the property is now owned by the two individuals in defined shares, generally 50% each.

However, if we then did Basic Mirror Wills, we are defeating the object somewhat as Mirror wills will give the 50% back to each other thereby leaving the estate open to the same risks.

In order for the PPT to work, we write trusts into each of the wills which allows each individual to protect their 50% for the beneficiaries on their own death via the Trust rather than leaving the estate open to risks by leaving it to the survivor.

What are the benefits of a PPT?

A PPT can be used to protect a property for children against a remarriage of one of their parents if the other had deceased.

For example, Mr & Mrs Smith are a married couple who own a property jointly and have two children. Unfortunately, Mr Smith passed away leaving the whole property to Mrs Smith via Basic Mirror Wills. Mrs Smith remarried after a few years and herself passed away a few years later. At this point, the estate got diverted to Mrs Smith’s new husband. This is called Sideways Disinheritance and is one of the most common causes of children missing-out on their inheritance.

If a PPT was used, then Mr Smith would’ve protected his 50% of the property for his two children via a PPT on his death and Mrs Smith’s new husband would not have had a claim on that portion.

A PPT could also be beneficial in terms of protection from Care Home Fees. If the first 50% of the property is protected via a PPT for the beneficiaries on first death then that 50% cannot be used for the care of the survivor if they ever needed care.

Who could benefit from a PPT?

Basically, any couple who own a property and have children could benefit from this type of Trust Will.

This type of set-up would be especially beneficial for a couple who own a property and one or both of them have children from previous relationships.


If you have any questions or queries around Protective Property Trusts (PPT) then get in touch with the experts at RRK Legal. We are based in Birmingham and serve clients all over the West Midlands, Worcestershire, Staffordshire, Warwickshire and beyond!

If you have been quoted for a PPT in the past, you will be very pleasantly surprised with our fees for this service!

Website: www.rrklegal.co.uk

Email: info@rrklegal.co.uk

Telephone: 01215460771

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