There are  Lifetime Trusts and Will Trusts, as the names suggests one type is taken out while you are alive, the other is  defined in your Will and only comes into effect on death.

A great example of how a Trust can benefit you is to create a Will Trust called a Property Protection Trust (PPT).

For this we write into your  Will that you wish to leave your share of the property in a  PPT and we ensure that your property  is jointly owned as "Tenants in Common" rather than  "Joint Tenants".      Each partner leaves  their share (usually 50%) in the PPT for their children or other beneficiaries rather than to the joint owner of the property.

One reason for setting up a PPT is to avoid 'sideways disinheritance'. This occurs when the first partner dies, leaving children from the marriage who might reasonably expect to inherit some of the family estate in due course.  If the surviving spouse remarries without making a Will, then without protection, such as a PPT, the children may not receive any inheritance at all!

Another benefit can be that the survivor never becomes the sole owner of the property which prevents the Local Authority from including the whole value of the property when totalling assets if the survivor needs permanent residential care. So the most that could be claimed against is the survivor’s half of the property.

One in every three women and one in every four men are likely to require long term residential care.

Fees in Care Homes vary considerably but are in the order of £15,000 to £25,000 depending on facilities and the area of the country.

In April 1993 the Community Care Act came into force in the UK. It removed responsibility for assessing needs and paying for care from the Department of Social Security to Local Authorities. It gave the right to the Local Authorities to means test individuals to assess whether any financial assistance will be given. In general, if you have assets valued at over £23,250 and require residential care, you are responsible for the costs and will not be eligible for help from your local authority.