The most common way for property to be owned is as Joint Tenants. This means the property is 100% owned by both partners and this can have significant detrimental impacts on the estate. A Will Trust allows the owners of a property to separate their share, usually 50% each. In the event of the first passing the first share of the property is held in trust, allowing the surviving partner to remain in control of the property while safeguarding the family asset. The following examples highlight the huge financial benefits a Will Trust offers.

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Example one

David and Claire have been together over 30 years, they worked hard to pay off their mortgage and have decided that the property should go to their son Robert when they die. Unfortunately, after Claire's passing, David develops dementia and after being cared for by his family it reaches the stage where they are unable to cope with his needs. David is reluctantly placed into a care facility. As the property, which is valued at £250 000, is owned jointly, the local authority uses the full value of the property to pay for his care. Currently legislation allows the family to retain just £14,250. In this case Roberts inheritance was reduced by £235,750.

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Had David and Claire protected their property with a Will Trust only David’s half of the property could be used to fund his care. Claire's half of the property would remain intact, and Robert’s inheritance would be increased by £125,000.​

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Example two

Jim and Barbara are now heading towards the retirement they have saved for all their lives. Sadly, Jim is in a car accident and passes away leaving behind Barbara and their two daughters, Laura and Lucy. Some years pass before Barbara meets Paul and they eventually marry and move into Barbara’s house. Barbara passes away after a short illness and the property is now owned by her new husband who, in his Will, has left his assets to the children from his first marriage. Laura and Lucy have now been disinherited and Jim and Barbara’s family home is now the possession of people Jim never met.

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The alternative is to own the property as tenants in common, where each partner owns 50% of the property and in the event of the first death the first half of the property is placed into a Will Trust for the beneficaries and then later the second half is added. It enables the surviving partner to remain in the family home or allow them the flexibility to move from the property if they so wished and provides protection against the loss of the entire asset.

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In example two Jim’s half of the property would have been held in the Will trust after his passing so Laura and Lucy would have still received half of the property’s value as their inheritance.