A Property Protection Trust (PPT), also known as a Life Interest Trust, is a powerful tool to secure the future of your home. By incorporating a PPT into your Will, you can give a chosen beneficiary, known as the Life Tenant, the right to enjoy your property during their lifetime. This means they can live in the home or benefit from any income it generates, such as rent if the property is let, while protecting the property for future beneficiaries, known as the remaindermen.
Unlike absolute ownership, the Life Tenant never fully owns the property. When their lifetime interest ends β either upon death or if the Trust is terminated β the property automatically passes to the remaindermen, ensuring your wishes are followed exactly.
The Life Tenant is the person you wish to enjoy the property during their lifetime. This can be a spouse, child, or other family member. They do not own the property, but they can live in it or benefit from its income.
Remaindermen are the beneficiaries who inherit the property once the Life Tenantβs interest ends. You decide these beneficiaries in your Will.
No. The Life Tenant has a right to use the property or receive income from it, but cannot sell or transfer ownership. The property is legally held by the Trustees for the benefit of the Life Tenant and eventual remaindermen.
A PPT allows you to provide for a loved one while ensuring the property passes exactly as you intend after their lifetime. It offers both flexibility and protection, particularly in complex family situations or where there may be concerns about future claims on your property.
