Family Probate Preservation Plus Trust (PPPT)

SOME OF THE BENEFITS OF THE PROPERTY TRUST (PPPT)

KEY FEATURES AND BENEFITS

The Probate Preservation Plus Trust (PPPT) is simply the most comprehensive trust of its type, designed to remove the concerns that many have when placing their home into trust.

As well as the usual Nil Rate Band, the PPPT can ensure that your estate can still benefit from an ADDITIONAL Inheritance Tax allowance called the Residence Nil Rate Band (RNRB) meaning a potential tax saving of up to £140k in Inheritance Tax (qualification criteria applies).
The PPPT can, in certain circumstances, also allow your loved ones to avoid probate delays, meaning that they have access to the trusts assets when they are most needed.
Holding assets in a PPPT can ensure that these do
not add onto your beneficiaries’ estates, increasing
their own estate values on death and creating a much larger Inheritance Tax bill for future generations (their own beneficiaries) to pay and so losing more of their inheritance than necessary!
The PPPT can be extremely useful with clients who
have lost capacity, to avoid the Office of the Public
Guardian (OPG) restrictions when acting under a Power of Attorney, as the Trustees can administer the Trust assets on your behalf.
Holding assets in a PPPT can ensure that, if your children/chosen beneficiaries were subject to divorce proceedings, what you intended them to receive could be better protected and remain in the family.
The PPPT can be useful to mitigate or reduce third party threats such as Taxation, Divorce, Re-marriage, Creditors and Care costs in certain circumstances, albeit deliberate deprivation must always be taken into consideration and success can never be guaranteed.
Similarly, if your children/chosen beneficiaries run into financial difficulties and become subject to creditor claims/bankruptcy, then the PPPT could provide more protection from such claims, preventing their inheritance from being lost!
The PPPT is a very tax efficient trust with NO tax to pay on entry, NO tax to pay on the 10 year anniversary and NO tax to pay on exit during the lifetime of the creator of the Trust (known as the Settlor).

The PPPT is not used for Inheritance Tax (IHT) gifting advantages, as the transfer would be a gift with reservation of benefit, because you continue to live in the house.

Moving Your Family Home into a Trust

Family Home
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PPPT

Trust Support

Harratts can assist you in appointing a professional trustee, Countrywide Tax & Trust Corporation (CTTC). If you choose professional trusteeship, CTTC value your trust in their services and understand the importance of transparency when it comes to their fees & charges. Harratts Legal Services and CTTC strive to provide our clients with the highest level of professionalism. Our fees for the professional trusteeship are based on comparative assessment of the services required and the complexity of the trust structure. It is important to know our fees are competitive and are in-line with industry standards.

You will need to hold a trustee meeting whenever a significant event occurs such as a settler passing away or if you wish to sell your house. The trustee meeting will ensure your estate planning is not unravelled.

The cost of a trustee meeting is currently £420 (including VAT) and is paid at the time the meeting takes place. Any further work that is deemed necessary by all parties during this meeting will be quoted for at this time.

For more information on Countrywide fees click the link at the bottom of this page.

Informing Your Home Insurance Provider

If you choose to protect your property by placing it in trust, it is imperative you contact your home insurance provider to advise them of this change.

SELLING YOUR PROPERTY OR RELEASING EQUITY

Should you wish to sell your property or release equity from your home, the Trustees would need to agree to this. When you transfer your property into a Trust, the Trust becomes the legal owner and holder. In any event, Countrywide Tax and Trust Corporation Ltd can act on behalf of the trust to deal with any legal matters relating to whatever it is you need. If you appoint Countrywide Tax and Trust Corporation Ltd as a Professional Trustee, then you should contact them prior to taking steps to market the property or agreeing a sale. Similarly, should you wish to take out an Equity release or a mortgage on the property, please make contact first so that it can be ensured that you understand all of the possible implications. It is important that you are fully informed about the Probate Preservation Plus Trust (also known as thee PPPT) which will be handled by Harratts Legal Services.

CountryWide Information & Fees