You don’t always need a complicated lifetime trust to protect your family home. With some straightforward planning, you can give your loved ones security and flexibility—without the stress and expense of complex arrangements. Let’s explore the practical options available, how they work, and what pitfalls to avoid.
Simple Structuring for Family Security
The first step is to look at how you own your home. Most couples own as joint tenants, meaning the whole property automatically passes to the survivor if one dies. However, switching to “tenants in common” means each person owns a defined share—often 50/50. This allows you to decide what happens to your share in your will, rather than it passing automatically.
A popular approach is the will-based life interest (property protection) trust. Here’s how it works: on the first death, the deceased’s share of the home is held in trust for the surviving partner’s lifetime. The survivor can continue living in the home, but the deceased’s share is protected for the children or other chosen beneficiaries. This arrangement helps guard against the risk of remarriage or new wills that could divert the inheritance elsewhere.
To make things run smoothly, include clear letters of wishes and practical powers for executors and trustees. This helps future administrators understand your intentions and manage the property without unnecessary hurdles.
Care Fee Myths and Deprivation of Assets
Many people worry about losing their home to care fees and consider giving it away during their lifetime. However, deliberately transferring your home to avoid care costs can be challenged by local authorities as “deprivation of assets.” There’s no fixed safe time limit—if the intention was to avoid care fees, the transfer can be disregarded, even years later.
Instead of risky lifetime transfers, focus on robust wills and sensible ownership structures. These are far less likely to be challenged and offer genuine protection for your family.
Example: How It Works in Practice
Imagine a married couple who own their home as tenants in common, each with a 50% share. Their wills include life interest trusts. When the first spouse dies, their half is held in trust for the survivor’s lifetime. The surviving spouse can live in the home for as long as they wish, but the deceased’s share is ring-fenced for the children. This means that, even if the survivor remarries or changes their will, half the home remains protected for the next generation.
Practical Steps to Take
Check your property title: If you’re joint tenants, consider severing the tenancy to become tenants in common.
Update your wills: Include a life interest trust and clear instructions for your executors and trustees.
Write a letter of wishes: Explain your intentions and any practical points for managing the property.
Avoid lifetime transfers: Don’t rush into giving away your home, as this can backfire for both tax and care assessments.
Key Takeaway
Start with title and will planning. Simple steps like severing joint tenancy and including a life interest trust in your will can offer strong protection for your home and your family’s future. Avoid rushed lifetime transfers—they’re risky and often ineffective for care fee planning. With clear documents and sensible structuring, you can achieve peace of mind and security for those you care about.
Disclaimer: This article is for general information only and does not constitute legal, financial or tax advice. Every estate is different, and outcomes depend on your specific circumstances. Take time to familiarise yourself with the rules and keep your paperwork up to date.