A Protective Property Trust in your will protects your share of the family home from care fees, remarriage, and creditors — while allowing your spouse to live there for the rest of their life.
Care Fee Protection
Your share of the home is held in trust — reducing the value assessed in means testing for care home fees.
Remarriage Protection
Prevents your share passing to a new spouse if your partner remarries after your death.
Creditor Protection
Your share is protected if the surviving spouse faces bankruptcy or significant debt.
Nil-Rate Band Preserved
The trust qualifies for spousal exemption — no IHT on first death, and both nil-rate bands available on second death.
A Protective Property Trust (PPT) — also called a Life Interest Trust or Property Protection Trust — is a legal arrangement created within your will. When you die, your share of the family home does not pass outright to your surviving spouse. Instead, it passes into a trust, with the surviving spouse holding a life interest: the right to live in the property for the rest of their life.
Your share of the property is ring-fenced. It cannot be sold, given away, or passed to a new partner without the trustees' agreement. When the surviving spouse dies, your share passes to the beneficiaries you named in your will — typically your children.
PPTs are particularly valuable for couples with children from previous relationships, those concerned about care home fees, and anyone who wants to ensure their share of the family home reaches their own children rather than being diverted by remarriage or financial difficulties.
Tenants in Common Is Essential
A PPT only works if you own your home as tenants in common — not joint tenants. If you currently own as joint tenants, the right of survivorship means your share passes automatically to the survivor regardless of your will. You must sever the joint tenancy first. This is a straightforward process but must be done before the PPT can take effect.
For a PPT to work, the property must be owned as tenants in common — not joint tenants. Each partner owns a distinct share (typically 50/50). If you currently own as joint tenants, the joint tenancy must be severed first using a formal notice.
Your will directs that your share of the property passes into a Protective Property Trust on your death. The trust is created automatically when probate is granted — no separate trust deed is needed during your lifetime.
The surviving spouse is granted a life interest in the trust property. This means they have the right to live in the home for the rest of their life — but they do not own your share outright. They cannot sell or give away your share without the trustees' agreement.
Trustees — typically the surviving spouse and one or more adult children — hold the legal title to your share. They have duties under the Trustee Act 2000 to act in the interests of all beneficiaries, maintain the property, and keep records.
When the surviving spouse dies, the trust ends and your share passes to the ultimate beneficiaries named in your will — typically your children. Both nil-rate bands are available on the second death, keeping the arrangement tax-neutral.
How a Protective Property Trust compares to leaving your share of the home directly to your spouse.
| Issue | Protective Property Trust | Joint Tenants / Outright Gift |
|---|---|---|
| Ownership structure required | Tenants in common | Joint tenants (right of survivorship) |
| What happens on first death | Share passes into trust; spouse has life interest | Share passes automatically to survivor |
| Surviving spouse's rights | Right to live in the home for life | Full ownership — can sell, gift, or leave to anyone |
| Care fee protection | Yes — trust share not fully assessed | No — full property value assessed |
| Remarriage protection | Yes — trust share cannot pass to new spouse | No — survivor can leave to new spouse |
| Nil-rate band on first death | Used (trust qualifies for spousal exemption) | Unused (passes to survivor free of IHT) |
| IHT on first death | Nil (spousal exemption applies to life interest) | Nil (full spousal exemption) |
| IHT on second death | Both nil-rate bands available | Both nil-rate bands available (if claimed) |
A PPT ensures your share of the home passes to your children — not to a new partner if your spouse remarries.
By placing your share in trust, you reduce the value of the surviving spouse's estate that is assessed for means-tested care funding.
A PPT protects your share from creditors if the surviving spouse faces bankruptcy or insolvency.
A PPT uses your nil-rate band on first death (via the trust), potentially saving IHT on the second death.
A PPT ensures your share of the home ultimately passes to your own children, even if your spouse has children from another relationship.
Trustees of a Protective Property Trust have legal duties under the Trustee Act 2000. These duties apply for the lifetime of the trust — from the first death until the surviving spouse dies and the trust ends.
A PPT is a powerful tool, but it is not right for every situation. Consider these limitations carefully.
The surviving spouse cannot sell the property without the trustees' agreement. If they want to downsize, the trustees must agree and the proceeds must be split between the survivor's share and the trust.
Equity release products typically require full ownership. A PPT may make equity release more complex or unavailable, as the trust holds a share of the property.
Trustees have legal duties to both the life tenant and the remainder beneficiaries. Family dynamics can make this difficult if relationships break down.
The trust creates ongoing administrative obligations — including Land Registry registration, record-keeping, and potentially trust tax returns if the property generates income.
Related Guides
Tenants in Common vs Joint Tenants
Understand the difference and why it matters for estate planning.
Spousal Exemption & IHT
How the unlimited spousal exemption works and why PPTs qualify.
Transferable Nil Rate Band
How both nil-rate bands are preserved and claimed on the second death.
Putting Your House in Trust for Children
Options for protecting the family home for the next generation.
Care Fee Planning
Strategies to protect your assets from care home fees.
Family Asset Protection Trusts
Broader trust arrangements to protect family wealth.
A Protective Property Trust (PPT) is a legal arrangement created in your will that places your share of the family home into a trust on your death. The surviving spouse has the right to live in the property for life, but your share is protected from care fees, remarriage, and creditors — and ultimately passes to your chosen beneficiaries.
Yes. For a PPT to work, the property must be owned as tenants in common — not joint tenants. If you currently own as joint tenants, the joint tenancy must be severed first. This is done by serving a formal notice on your co-owner and registering the change at the Land Registry.
Yes. The surviving spouse is granted a life interest in the trust property, which means they have the right to live in the home for the rest of their life. They cannot be forced out. However, they do not own the deceased partner's share outright.
Yes, but the trustees must agree to the sale. The proceeds are then split between the surviving spouse's share and the trust. The trust's share can be reinvested in a new property or held as cash, with the surviving spouse retaining their life interest.
A PPT can reduce the value of the surviving spouse's estate that is assessed for means-tested care funding. The trust share is not owned by the surviving spouse, so it may not be included in the means test — or may be valued at a significant discount. However, the rules on care fee means testing are complex and subject to change.
Yes. If the surviving spouse remarries, they cannot pass the deceased partner's share to their new spouse. The trust share is ring-fenced and will ultimately pass to the beneficiaries named in the original will — typically the children.
No IHT is payable on first death because the life interest qualifies for the spousal exemption. On the second death, both nil-rate bands are available — keeping the arrangement tax-neutral. A PPT does not increase the IHT bill; it simply preserves the nil-rate band for use on the second death.
Typically, the surviving spouse and one or more adult children act as trustees. Trustees have legal duties under the Trustee Act 2000 to act in the interests of all beneficiaries, maintain the property, and keep accurate records.
A Protective Property Trust is a type of Life Interest Trust. The terms are often used interchangeably. Both grant the surviving spouse a lifetime right to benefit from the property. The key features — protection from care fees, remarriage, and creditors — are the same.
A will incorporating a Protective Property Trust is more complex than a basic will and typically costs more. The exact cost depends on the complexity of your estate and whether you also need to sever a joint tenancy. Contact PDA Law for a transparent fee estimate.
A Protective Property Trust is one of the most effective ways to protect your family home for the next generation. Our wills solicitors in Chester can advise on whether a PPT is right for your circumstances and draft the necessary documents.
Spousal Exemption & IHT
How the unlimited spousal exemption works and why PPTs qualify for it.
Transferable Nil Rate Band
Claim the unused nil-rate band from the first spouse's estate on the second death.
Care Fee Planning
Strategies to protect your assets from care home fees.
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Do I Need Probate?
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