Property Protection Trusts Guide

11/08/26

If you've started looking into protecting your family home for the future, you've probably come across the term “Property Protection Trusts” (also known as a “Protective Property Trust”). It's one of those phrases that gets thrown around a lot, often alongside promises about avoiding care home fees or protecting your children's inheritance.

The truth is more nuanced than most quick answers online suggest. This guide walks through what a Property Protection Trust actually is, what it can and can't do, and the one area — the “deliberate deprivation of assets” rule — that trips up more people than anything else.

What Is a Property Protection Trust?

A Property Protection Trust (PPT) is a type of trust written into your Will. It doesn't do anything while both partners are alive — it only comes into effect following first death. PPT’s are designed for those who are married, in a civil partnership or simply cohabitating. If you are single, then other types of trusts might be suitable.

Here's how a PPT works in basic terms:

• A Notice of Severance (SEV) must be to sent to HM Land Registry (property in England & Wales only). This informs HMLR that the property is now held as tenants-in-common rather than as beneficial joint tenants.
  
  
• When the first partner dies, their share of the property (usually 50%) goes into the PPT, rather than passing outright to the surviving partner. It is protected for their chosen beneficiaries (most often mutual children). 
  
  
• The surviving partner is given what’s called a life interest — they can carry on living in the property for the rest of their life, or until another pre-determined event is triggered e.g. remarriage.
  
  
• When the surviving partner dies (or moves into care, or sells the property), the trust share passes to whoever was named in the original Will — again, this is usually the children. These ultimate beneficiaries are known as remaindermen.

The key idea is separating who benefits from living in the property from who ultimately inherits it.

Why People Set One Up

There are a few recurring reasons people choose a Property Protection Trust over a simple Will:

Care home fees. Many people set up a PPT hoping to protect part of the property's value from being counted if the surviving partner later needs residential care. This can offer partial protection, but it comes with an important caveat, namely deliberate deprivation of assets (see below).  

Remarriage and blended families. This is one of the biggest drivers. Without a trust, if your partner outlives you and later remarries, there's a real risk your share of the house could eventually pass to their new spouse, or that spouse's children, instead of your own children. A PPT keeps your share ring-fenced for the people you originally intended.

Protecting inheritance from a child's divorce. Because the trust share passes to your children (rather than being a lump sum your partner could redirect), it can be structured to make it harder for it to be swept up in a future divorce settlement.

Creditor protection. Similarly, holding a share in trust can offer some protection if a beneficiary later runs into financial difficulty or bankruptcy.

How Much Does a Property Protection Trust Cost?

Costs vary regardless of whether you use a qualified Will writer or a specialist solicitor, but as a general guide, expect a PPT to cost between £600 and £1000. In other words, it will cost two to three times more than a standard mirror Will. However, bear in mind that having a protective property trust in your Will can protect half of the equity in your home. 

There may be other costs to consider:

• On first death, the PPT needs to be formalised, which will include adding the trustees to the HM Land Registry title, declaration of trust and trustee minutes. This additional legal work will cost in the region of £1200.
  
  
• No inheritance tax (IHT) is due when the trust is set up (on first death) providing the property is passing to a spouse or civil partner. 
  
  
• On second death (or trust ends for other reasons), IHT is calculated and charged, if applicable, when the surviving life tenant dies. The property is valued at the current market rate and added to their estate for IHT assessment. Whether tax is payable depends on individual circumstances, so seek advice from your solicitor or Will writer.
  
  
• If the trust generates income, e.g. from renting out the property, the trustees will have to pay income tax on the rental revenue. However, this would not be applicable where the property is merely being lived in by the survivor (the life tenant). 

Advantages

• Keeps a share of the home in the 'bloodline' even if your partner remarries.
• The surviving partner still has real security — a legal right to live there, not just a promise.
• Can offer some protection from care home fees (not guaranteed).
• Can help protect a child's inheritance from their own future divorce or creditors.
• Gives more certainty than relying on a mirror Will and trusting that nothing changes later.
• Allows the survivor to downsize into a smaller property whilst still providing protection.

Disadvantages

• Added complexity and cost. Trustees have ongoing legal duties, and the trust may need separate record-keeping or tax reporting.
• Reduced flexibility. It may prove difficult, if not impossible, to release equity from the property if the circumstances of the survivor change. 
• Possible family tension. Trustees are often family members themselves, and disagreements can arise over how the trust is managed.
• It isn't automatic. The protection only applies to the share actually written into the trust — the Will has to be drafted correctly for it to work as intended.

The “Deliberate Deprivation of Assets” Rule

This is the single most misunderstood part of Property Protection Trusts, and it's worth its own explanation.

If the surviving partner later needs council-funded care, the local authority can look into whether assets were given away or moved into trust mainly to avoid paying care fees. If they can prove that's what happened, they will most likely apply a rule called deliberate deprivation of assets — and treat the person as if they still owned that share of the property, regardless of the trust.

When deciding whether deprivation has occurred, a council will typically look at:

Timing — was the trust set up shortly before care was needed, or years in advance?

Health at the time — was there a known or anticipated need for care when the trust was created?

Stated purpose — was avoiding care fees the main reason given, or one reason among several genuine estate-planning goals?

If a council decides deprivation has taken place, they can assess care fees as though the trust didn't exist — which defeats the purpose of setting it up in the first place.

The reassuring news is that a trust set up well in advance, for genuine reasons such as protecting a blended family's inheritance or guarding assets against remarriage, is far less likely to be challenged than one set up shortly before care becomes necessary. This is exactly why getting proper advice at the time of drafting matters so much — it's not a rule you want to discover during a financial means assessment.

Property Protection Trust vs a Simple Mirror Will

	PPT	Simple Mirror Will
Who inherits the deceased's share	Held in trust for children/beneficiaries	Passes outright to surviving spouse
Surviving spouse's rights	Right to occupy the property for life	Full ownership — can sell, move, remarry freely
Protection if spouse remarries	Children's inheritance is protected	No protection — a new spouse could eventually inherit everything
Care home fee protection	Partial protection, subject to deliberate deprivation rules	None
Complexity and cost	Higher — ongoing trustee duties	Lower — straightforward
Flexibility for survivor	More restricted	Fully flexible

For many couples in a first marriage with a simple family situation, a mirror Will is perfectly sufficient. A PPT tends to earn its cost and complexity when there's a specific risk to plan around.

Is a Property Protection Trust Right for You?

Likely a good fit if:

• You're in a second marriage or blended family and want to protect your children's inheritance
• You want to safeguard against the possibility of future care costs, set up well in advance
• You want more certainty than “trusting” a mirror Will won't be changed later

Possibly unnecessary if:

• You're in a simple family situation with no remarriage or blended-family concerns
• Your property is jointly owned with no complicating factors
• You're mainly hoping to avoid care fees at short notice — this is exactly the scenario the deliberate deprivation rule is designed to catch

Getting It Right

Because of the deliberate deprivation risk and the ongoing trustee responsibilities involved, a PPT isn't something to set up from a generic template. Getting proper, personalised advice at the drafting stage is what makes the difference between a trust that holds up and one that gets successfully challenged years later.

If you think a Property Protection Trust might suit your situation, it's worth speaking to a qualified Will writer or solicitor who can look at your specific circumstances.

Quick Reference

What it is: A trust written into your Will that protects your share of the family home for your children, while letting your surviving partner remain living in the property.

Top 3 pros: Protects inheritance after remarriage - gives the surviving partner a legal right to live there -  can offer care fee protection.

Top 3 cons: Added cost and complexity - less flexibility for the surviving partner - care fee protection isn't guaranteed and can be challenged under the deliberate deprivation rule.

Typical cost: Higher than a standard mirror Will, plus potential ongoing trustee administration costs.

The bottom line...

A Property Protection Trust can be a valuable tool for the right family situation — but it works best when set up well in advance and for genuine reasons. You should always seek professional advice.