Expat Financial Advice: What is a Property Trust Will?
TL;DR
A Property Trust Will can help protect your share of the family home after you die while still allowing your surviving spouse or partner to continue living there. Rather than leaving your share of the property to them outright, it is placed into a trust, with the ultimate beneficiaries often being your children. This can provide greater control over how the property passes to the next generation and offer protection if the survivor later remarries, requires long-term care or changes their Will. However, Property Trust Wills are not suitable for everyone, so the legal, tax and practical implications should be considered carefully before putting one in place.
Could a Property Trust Will Fit Into Your Estate Plan?
Deciding what should happen to your share of the family home after your death can be particularly important when you want to provide security for your spouse or partner while also protecting the interests of your chosen beneficiaries.
A Property Trust Will can potentially allow a surviving spouse or partner to continue living in the property while the deceased person’s share is held in trust for beneficiaries, such as children or grandchildren. This can be particularly relevant for blended families, second marriages and people with children from previous relationships.
For British expats, estate planning can become more complicated when you own UK property while living overseas or have assets, family members and Wills spanning more than one country.
I can help you consider how your property, pensions, investments and other assets fit into your wider financial and estate planning, including the financial implications for your spouse, partner and beneficiaries. Where a Property Trust Will or another legal structure may be appropriate, specialist legal advice should be obtained for the drafting and implementation.
A property trust will (also known as a property protection trust, an asset protection trust, a family protection trust or a property preservation trust) keeps your home safe for your loved ones after you die.
It does this by placing your share of the property in a trust, so that the people you want to benefit from it can – but without owning it.
With a property trust will, your spouse can still live in the home you share after your death.
However, because they won’t own your half of the property, it:
- Is kept safe for your children, even if your partner remarries, changes their will or has children from another relationship.
- Is left to the people you want: it can’t be taken by creditors or given away in divorce settlements.
- May help preserve the deceased partner’s share of the property for their chosen beneficiaries, although the treatment of property in any future care-fee assessment will depend on the ownership structure, terms of the trust and individual circumstances.
In short, it protects both your spouse’s security and your children’s inheritance.
How does a property trust will work?
The half share of the family home belonging to the first person to die passes into the trust.
This type of trust is known as a ‘life interest trust’ in favour of the survivor which means that they can benefit from the share of the house in the trust during his/her lifetime.
On their death, the trust fund passes to your children.
Why use a property trust will?
Remarriage or complex family arrangements.
61% of men and 19% of women remarry after the death of their husband or wife.
If your spouse remarries after your death or, if either or both of you have children from a previous marriage, then there could be unforeseen consequences when your estate is distributed on your death.
If you leave your estate on your death to your spouse outright and they remarry after your death without making other provisions, all of your estate, together with your spouse’s, could pass to their new spouse.
Your children, for example, would not be relatives of the new spouse or partner and your estate could pass outside the family to someone you have never even met.
A property trust will can ensure your assets are protected and pass to the people you have specified.
If you have children from a previous relationship, it is likely that you will want to make some provision for both your new spouse and your children.
However, if you leave all of your estate to your spouse outright, then your assets could pass ultimately to their children rather than your own.
By having a property trust will, you can make provision for your new spouse for their lifetime, whilst also ensuring your assets ultimately pass to your children on your spouse’s death.
Bankruptcy/financial difficulty
If your children get into debt, the trust means their creditors can’t force the sale of the family home.
While orders for sale of jointly owned properties aren’t common, if they can’t pay a debt any other way it is a possibility.
The trust keeps the house out of the creditors hands while your spouse is living there.
Divorce
If your children get divorced, the home would be kept out of any settlement.
We cannot predict what will happen in someone else’s relationship and inherited properties are not automatically excluded from the assets to be divided on divorce.
The trust ensures that your spouse is able to continue living in the family home in such a scenario.
Property Trust Wills and Care Fees
Property Trust Wills are sometimes associated with protecting a share of the family home from future care costs, but the position is more complicated than this. A Property Trust Will does not guarantee that a property will be protected from care fees, and it should not be created solely on the assumption that it will prevent a local authority from taking property into account.
With a typical Property Trust Will arrangement, each spouse or partner owns a defined share of the property. When the first person dies, their share does not pass outright to the surviving partner. Instead, it passes into a trust created by their Will, usually with the surviving partner retaining the right to live in the property.
Because the deceased person’s share is held within the trust rather than being owned outright by the surviving partner, the surviving partner does not personally own that share of the property. However, the precise treatment of the property in any future local-authority financial assessment will depend on the ownership structure, terms of the trust and individual circumstances at the time.
How Are Care Fees Means-Tested in England?
For the 2026/27 financial year in England, the upper capital limit for local-authority support remains £23,250 and the lower capital limit remains £14,250.
A person with assessable capital above £23,250 will generally be responsible for the full cost of their care. Between £14,250 and £23,250, a means-tested contribution from capital can apply alongside income. Below £14,250, capital is not used to calculate the contribution, although income may still be taken into account.
What About Deprivation of Assets?
Local authorities can consider whether somebody has deliberately deprived themselves of assets in order to reduce the amount they are expected to contribute towards their care.
This is an important distinction with a Property Trust Will. The trust is normally created under the Will of the first spouse or partner to die and concerns their share of the property. It is therefore different from somebody simply giving away or transferring an asset that they already own because they anticipate needing care.
However, care-fee assessments are fact-specific, and a Property Trust Will should not be presented as a guaranteed way of avoiding care costs. The local authority will apply the rules in force at the time and consider the person’s actual assets and circumstances.
The primary purpose of a Property Trust Will should be appropriate estate and succession planning – for example, providing security for a surviving spouse or partner while preserving the deceased person’s share of the property for their chosen beneficiaries.
Because the legal structure and wording of the Will and trust are important, appropriate legal advice should be obtained when establishing this type of arrangement.
Who Might Consider a Property Trust Will?
A Property Trust Will can be particularly relevant when you want to provide security for a surviving spouse or partner while retaining greater control over who ultimately inherits your share of the family home.
Whether this type of arrangement is appropriate will depend on your family circumstances, how your property is owned and what you want to happen after your death. Situations in which a Property Trust Will might be considered include:
Couples Who Want to Preserve Their Share for Their Children
You may want your spouse or partner to be able to continue living in the family home after your death while also ensuring that your share of the property ultimately passes to your children or other chosen beneficiaries.
A Property Trust Will can be structured so that your share passes into trust on your death, with the surviving partner usually retaining the right to occupy the property under the terms of the trust.
Blended Families and Second Marriages
Property Trust Wills can be particularly relevant for blended families. If you have children from a previous relationship, leaving your entire share of the property outright to a new spouse or partner means you may have no control over who eventually inherits that property.
For example, the surviving partner could later change their Will, remarry or make different decisions about their estate. Holding the deceased person’s share in trust can help preserve it for the beneficiaries they originally chose while still providing appropriate rights for the survivor.
Couples Concerned About What Happens After Remarriage
If the surviving spouse or partner later remarries, their estate-planning position can change significantly. Depending on the circumstances and jurisdiction, marriage can also affect an existing Will.
A Property Trust Will can provide greater certainty over the eventual destination of the first person’s share of the property rather than relying entirely on the surviving partner’s future Will and circumstances.
Families Where a Beneficiary Has Financial Difficulties
There may be circumstances where you do not want an inheritance to pass outright to a beneficiary immediately. For example, you may have concerns about a beneficiary’s financial difficulties, bankruptcy, relationship circumstances or ability to manage a substantial inheritance.
The appropriate trust structure will depend on what you are trying to achieve, so specialist legal advice is important when deciding how beneficiaries should inherit.
Couples Who Want the Survivor to Remain in the Family Home
Estate planning does not have to involve choosing between providing for your partner and leaving an inheritance to your children.
Depending on how the Will and trust are drafted, the surviving spouse or partner can usually be given rights to continue living in the property. The trust may also contain provisions dealing with circumstances such as selling the existing home and purchasing another property.
British Expats Who Still Own Property in the UK
For British expats, the position can become more complicated when a UK property forms part of an estate that also includes overseas assets, beneficiaries in different countries or Wills covering more than one jurisdiction.
A Property Trust Will may form part of the overall estate-planning discussion, but the UK arrangement should not be considered in isolation. The succession, tax and legal rules in your country of residence and any other relevant jurisdiction may also need to be considered.
A Property Trust Will is not automatically suitable simply because you own a home or want to leave property to your children. The objective should be to establish whether the arrangement fits your family circumstances and wider estate plan, while ensuring that the Will and trust are properly drafted by an appropriately qualified legal professional.
If we use a property trust will, can the survivor move or will they have to stay in the same property?
The family home can be sold, and an alternative property purchased.
If the property which is purchased costs less than the original property, any profit would need to be shared equally between the surviving spouse and the trustees.
Real People, Real Results
“In just one year Ross has helped me enormously, firstly and most importantly to better understand my financial position, rather than putting it off, to look at where I want to get to and start making some simple changes in order to achieve this. I would not hesitate in recommending Ross.”
— Paul Martingell
More TestimonialsCommon Property Trust Will Mistakes
A Property Trust Will can be a useful estate-planning tool, but misunderstandings about how the arrangement works can lead to unintended consequences. The structure needs to reflect your family circumstances, property ownership and what you actually want to happen after your death.
Here are some of the most common mistakes to consider.
1. Assuming a Property Trust Will Guarantees Protection From Care Fees
A Property Trust Will should not be regarded as a guaranteed way of protecting a home from future care costs. Local-authority financial assessments depend on the ownership of the property, the terms of the trust, the individual’s circumstances and the rules applying at the time.
The primary purpose should be appropriate estate and succession planning, such as providing security for a surviving spouse or partner while preserving the deceased person’s share of the property for their chosen beneficiaries.
2. Assuming the Surviving Partner Automatically Owns the Deceased’s Share
With a typical Property Trust Will, the deceased person’s share of the property passes into a trust rather than becoming the surviving partner’s property outright.
The survivor may have the right to continue living in the home and potentially other rights under the trust, but occupying the property is not the same as owning the deceased person’s share outright.
3. Not Understanding Who the Trustees and Beneficiaries Are
Trustees are responsible for administering the trust according to its terms, while the beneficiaries are the people who may ultimately benefit from the assets held within it.
Choosing appropriate trustees and understanding their responsibilities is therefore an important part of establishing the arrangement. The Will should also clearly identify who is intended to benefit and under what circumstances.
4. Failing to Consider What Happens if the Survivor Wants to Move
A surviving spouse or partner may not want to remain in the same property for the rest of their life. They might eventually want to downsize, move closer to family or relocate for health or lifestyle reasons.
The trust should therefore be drafted with these possibilities in mind. Depending on its terms, it may be possible for the original property to be sold and another property purchased while preserving the respective interests of the trust and surviving partner.
This should be addressed when the Will and trust are drafted rather than left as a problem for the trustees and family to resolve later.
5. Failing to Review the Will After Major Family Changes
A Will that reflected your circumstances when it was written may no longer achieve what you intended several years later.
Marriage, civil partnership, divorce, separation, remarriage, the death of a beneficiary or trustee, the birth of children or grandchildren and significant changes to your assets can all provide reasons to review your estate planning.
Regular reviews can help ensure that the Property Trust Will continues to reflect your family circumstances and objectives.
6. Assuming a UK Property Trust Will Automatically Works Across Different Countries
This can be particularly important for British expats. You may live overseas while retaining a property in the UK, own assets in several countries or have separate Wills dealing with assets in different jurisdictions.
Succession, inheritance, matrimonial and tax rules can differ significantly between countries. There can also be circumstances where Wills prepared in different jurisdictions interact with one another in unintended ways.
A UK Property Trust Will should therefore be considered as part of your wider cross-border estate planning, with appropriate legal and tax advice obtained in the relevant jurisdictions where necessary.
7. Treating the Trust as a Standalone Solution
Your home may be one of your largest assets, but it is only one part of your overall financial position. Pensions, investments, savings, life insurance, other property and assets held overseas can all affect what eventually passes to your family.
A Property Trust Will should therefore fit into your wider financial and estate plan rather than being considered in isolation. The objective is to make sure that the arrangements for your property work alongside your other assets and continue to provide appropriately for the people you want to protect.
Frequently Asked Questions About Property Trust Wills
What is a Property Trust Will?
A Property Trust Will is a Will containing provisions that place a person’s share of a property into a trust when they die. The arrangement can allow a surviving spouse or partner to continue living in the home while preserving the deceased person’s share for their chosen beneficiaries, depending on the terms of the Will and trust.
How does a Property Trust Will work?
With a typical arrangement, each spouse or partner owns a defined share of the property. When the first person dies, their share passes into a trust created by their Will rather than passing outright to the survivor. The surviving spouse or partner may be given the right to continue living in the property, while the deceased person’s share is ultimately preserved for the beneficiaries specified under the trust.
Does my spouse or partner still have the right to live in the house?
They can do, provided the Will and trust give them that right. A Property Trust Will can be drafted so that the surviving spouse or partner has the right to occupy the property, potentially for the remainder of their life or until another event specified in the trust occurs.
Can the surviving spouse sell the house and move?
Potentially. The trust can be drafted to allow the existing property to be sold and another property purchased, while maintaining the respective interests of the trust and surviving spouse or partner. The precise rights and procedures will depend on the terms of the Will and trust.
Who owns the deceased person’s share of the property?
The deceased person’s share is held under the terms of the trust and administered by its trustees. The surviving spouse or partner may have rights to occupy or benefit from the property without owning the deceased person’s share outright. The trustees must administer that share in accordance with the terms of the trust.
What happens to the property when the surviving spouse or partner dies?
This depends on the terms of the trust. Typically, the deceased person’s share will then pass to, or be held for, the beneficiaries specified in the Will, such as children or grandchildren. The surviving partner’s own share of the property will be dealt with separately according to their estate-planning arrangements.
Can a Property Trust Will protect my children’s inheritance?
It can provide greater control over who ultimately receives your share of the property. This can be particularly relevant for blended families and second marriages where somebody wants to provide a home for their surviving spouse or partner while preserving their own share for children or other chosen beneficiaries.
Does a Property Trust Will protect my house from care fees?
A Property Trust Will does not guarantee that a property will be protected from future care fees. The treatment of property in a local-authority financial assessment will depend on the ownership structure, terms of the trust, the individual’s circumstances and the rules applying at the time. Local authorities can also consider deliberate deprivation of assets where somebody intentionally disposes of assets to reduce their contribution towards care costs.
Is a Property Trust Will the same as putting my house into trust during my lifetime?
No. With a Property Trust Will, the relevant trust is created under the terms of the Will following death. This is different from transferring ownership of a property into a trust during your lifetime. Lifetime trusts can have different legal and tax consequences and should not be treated as interchangeable with a trust created by a Will.
Can a Property Trust Will help with blended families?
Yes, this is one situation in which a Property Trust Will may be considered. For example, someone with children from a previous relationship may want their new spouse or partner to continue living in the family home while ensuring that their own share of the property ultimately passes to their children.
What happens if my surviving spouse or partner remarries?
A Property Trust Will can provide greater control over the eventual destination of the deceased person’s share because that share has not simply been transferred outright to the survivor. This can be relevant where there are children from an earlier relationship or concerns about how remarriage could affect the family’s eventual inheritance.
Do British expats need to consider Property Trust Wills differently?
British expats can face additional cross-border considerations. If you live overseas but retain property in the UK, or own assets and have beneficiaries in several countries, the succession, tax and legal rules of more than one jurisdiction may need to be considered. Separate Wills prepared in different countries also need to be coordinated carefully so that one does not unintentionally affect another.
Do I need a solicitor to create a Property Trust Will?
Because a Property Trust Will creates legal rights and responsibilities involving property, trustees and beneficiaries, appropriate legal advice should be obtained when drafting the Will and trust provisions. Financial planning can help establish how the arrangement fits with your property, pensions, investments, retirement needs and wider estate plan, while the legal structure should be prepared by an appropriately qualified legal professional.
The Bottom Line
A Property Trust Will can provide a way of balancing two important estate-planning objectives: providing security for a surviving spouse or partner while retaining greater control over who ultimately inherits your share of the family home.
Rather than your share of the property passing outright to the survivor, it can be held in trust for your chosen beneficiaries. Depending on how the Will and trust are drafted, your spouse or partner may retain the right to continue living in the property and provisions can potentially be included to accommodate circumstances such as moving home.
This can be particularly relevant for blended families, second marriages and people with children from previous relationships, where you may want to provide for your partner during their lifetime while preserving your share of the property for children or other beneficiaries.
However, a Property Trust Will should not be viewed as a guaranteed method of protecting a home from care fees, nor is it automatically appropriate for everyone. The ownership of the property, the rights given to the surviving partner, the choice of trustees and beneficiaries and your wider family circumstances all need to be considered carefully.
For British expats, there may be an additional layer of complexity where you live overseas but retain UK property, have assets in several countries or have Wills covering different jurisdictions. The relevant succession, tax and legal rules may therefore need to be considered together.
Ultimately, a Property Trust Will should form part of a coordinated financial and estate plan rather than being treated as a standalone solution. Financial planning can help establish how your property fits alongside your pensions, investments, retirement needs and other assets, while the Will and trust itself should be drafted with appropriate legal advice.
Talk to an Expert
Deciding how your home should eventually pass to your family can be an important part of your wider financial and estate planning. A Property Trust Will may be worth considering where you want to provide security for a surviving spouse or partner while retaining greater control over who ultimately inherits your share of the property.
I’m Ross Naylor, a UK-qualified Chartered Financial Planner and Pension Transfer Specialist with nearly 30 years’ experience helping families, British expats and internationally mobile clients with holistic financial planning, pensions, investments, retirement planning and estate-planning considerations.
I firmly believe your location in the world should never be a barrier to expert, impartial and transparent financial advice you can trust.
For British expats, planning what happens to your property can become more complicated when you live overseas but retain a UK home, have assets in several countries or have beneficiaries and Wills spanning different jurisdictions.
I can help you consider how your property and estate-planning objectives fit alongside your pensions, investments, retirement needs and wider financial plan. This can include considering the financial implications for a surviving spouse or partner, children from previous relationships and other beneficiaries. Where a Property Trust Will or another legal structure may be appropriate, the Will and trust provisions should be drafted with appropriate legal advice.
Book a Discovery Call