PPP Trust

The PPPT is used where you wish to pass all or part of your Main Residence to be controlled and managed by Trustees whilst you are still alive. This would require a Conveyance transferring the asset to the Trustees.

The fundamental feature of the PPPT is that you are one of the ‘Potential beneficiaries’ and so can continue to live in the property as you wish. You can also be a Trustee so you maintain full control of the asset. As such if you wish to move home, you can still choose to do so in your capacity as a Trustee. It would be advisable to also have Professional Trustees appointed to assist with any move to ensure that the new property is also protected in the same manner as the original property.

The purpose of the PPPT is to ensure that any dealings with the house will not be delayed on your death by the probate process. Hence, the assets remain immediately accessible (at the discretion of the Trustees) to the Potential beneficiaries. These would include your surviving spouse or partner, children and grandchildren.

Furthermore, if you lose the mental capacity to manage your affairs, then the remaining Trustees can continue to manage the Trust assets on behalf of the beneficiaries. This can avoid the necessity for Attorneys to deal with the Trust assets and the involvement of the Court of Protection.

As with the Probate Trust, the PPPT would not assist in reducing any Inheritance Tax liability, if one exists, although the Trust assets wouldn’t increase any other beneficiary’s estate for IHT.

Even more importantly, the assets may also be protected against potential claims on the remaining potential beneficiaries, such as divorce, separation, creditors and long term care fees