Severance of Joint Tenancy

How can I ensure that my share of my property eventually passes to my children if I die before my spouse/partner?

If I die first, how can I protect my share of my property from being used to pay for my spouse/partner’s care costs later in life?

SEVERANCE OF TENANCY (WITH A LIFETIME INTEREST TO YOUR SPOUSE/PARTNER)

Most houses are now owned on a Joint Tenancy basis. If one partner dies, the survivor becomes the sole owner. This rules out either partner gifting their share of the property to anyone else (e.g. their children). A common scenario is both spouses initially leaving everything to each other but wanting to ensure that the children receive their rightful share if the surviving spouse remarries.

One solution is for the survivor to receive a lifetime interest in the partner's share of the property with the value being maintained and ultimately passing to the children (a Property Protection Trust). This is only possible if the property is owned on a Tenants in Common basis. As Tenants in Common, each spouse has their own separate share which can be given away in their Will quite independently of each other.

This process may also be considered as a possible means of preventing government agencies acquiring the assets of the elderly if they come to depend on long term care.

These Property Trusts are unlikely to provide any inheritance tax benefits and must not be confused with Nil Rate Band Discretionary Will Trusts.

Please ask your legal adviser to explain how these Will Trusts may help you, as any Trust Clause written into a Will must be as a result of careful forward planning, deliberation and/or research.

absens haeres non erit

Steele Rose & Co Limited are Members of and regulated by the Society of Will Writers, Corporate Members of the

Institute of Paralegals and appointed Legal Service Providers for the Forces Pension Society.

Legal Services Office: 7 Deans Farm, Stratford sub Castle, Salisbury SP1 3YP.

Registered Office: The Parsonage, Stratford sub Castle, Salisbury SP1 3LH.

Regional Offices throughout England and Wales*

Registered in England No. 3392519 (in 1997) - VAT No. 750 5846 22

Tel: 01722 410009 - Fax: 01722 411666

email: src@303.org.uk

*London, Newcastle, Liverpool, Manchester, Hull, Bridgend, Colchester, Salisbury, Plymouth, Ashford, Tonbridge, Bath, Bristol, Birmingham, Andover, Winchester, Southampton, Bournemouth, Penn, Weymouth, Sherborne, Taunton, Hereford, Exeter, Milton Keynes, High Wycombe, Windsor, Romsey, Gerrards Cross, Devizes, Grantham, Eastbourne, Havant, Dorchester, Wimborne, Lincoln, Cambridge.