PPT is an abbreviation for a Protective Property Trust in a Will and not to be confused with a Home Protection Trust (known as an HPT) which is a very long and complex document separate from the Will.
There are huge differences between a Protective Property Trust & a Home Protection Trust. The HPT is more suitable for single people or a couple who have retired and paid off their mortgage, and it protects the whole house right from day one. In addition to that the trust cannot be contested by anyone who feels they should have an inheritance, and another big advantage is that probate is not needed for property in trust when you die, saving your beneficiaries stress and often a lot of money.
The Protective Property Trust on the other hand is more suitable for people of a working age who still have a mortgage, but it can only be taken out by a couple jointly owning their own home, and not by a single person. And it does not afford the same protection or benefits that the HPT does.
The Protective Property Trust is a cheaper option than an HPT and is a trust built into a pair of wills that does not become active until one of the pair dies. And then it just protects half the home. i.e. the half owned by the person that has died, so that should the other partner have to go into a care home or have other difficulties which could normally result in the home being lost, the half in Trust is preserved for the eventual beneficiaries. In order for the PPT to be protective we also change the way most people own their homes as Joint Tenants to Tenants in Common so that each person owns a distinct 50% share.
So to summarise, the PPT is cheaper and does protect one half of the home after the first had died and enables the owners to move home and re mortgage more easily. Whereas the HPT provides the ultimate protection for the whole home with additional benefits mentioned above, the owners can still move home but it would not be so easy to take out a new mortgage or equity release.
Our advice to most couples of a working age with a mortgage is to have new Wills with a PPT in them, but as they get older and no longer need a mortgage, swap it for the ultimate protection of an HPT. As always of course every case is different and we will always advise clients according to their individual circumstances and needs.
For more information telephone South West Asset Protection on 0800 014 8031 South West Asset Protection are fully insured, regulated and approved by Trading Standards under their Buy with Confidence scheme.
