Trading Standards - buy with confidence


Property Protection Trust

A Property protection trusts comes into effect on death.  Your is gifted to the trust, to your friends or family, whilst allowing you to carry on living in it. Unlike changing the title deeds of your , a property trust does not allow your family to sell your until your demise.  The rationale is that if you need residential care at some point in the future, you no longer own a house and can only be assessed on minimal assets. 

In what has been described as "the meanest of means tests", those with assets - which in most cases will include the value of their - of more than £23,500 are given no help at all with care costs.

These "self-funders" may receive a weekly contribution towards nursing costs, depending on their health needs, but will have to pay the full cost of accommodation and personal care.

Discretionary trusts

Will trusts and lifetime Trusts can be either fixed interest (where the first beneficiary has an absolute right to occupy the house and receive the income from any trust investments) or discretionary (where the trustees have a pool of potential beneficiaries and have a discretion how to benefit any of the potential beneficiaries).  

Usually a discretionary trust also has a letter of wishes for the trustees to consider, which may give one beneficiary the trustees' permission to live in the house or receive the income from investments.  The tax treatment of fixed interest trusts is different from discretionary trusts.

Disabled Trust

A Disabled Trust is a trust that contains money received as a consequence of personal injury or a trust created to protect the interests of a disabled person generally. A personal injury related Disabled Trust is a trust created for disabled individuals, which is intended to supplement, but not replace, any means-tested benefits to which the disabled individual may be entitled.

Personal injury related Disabled Trusts are established for working-age adults or some children who want to retain their entitlement to means tested benefits, now or in the future, such as:

  • Income Support
  • Housing Benefit
  • Council Tax Benefit
  • Working Families Tax Credit
  • Disabled Person's Tax Credit
  • Income Based Jobseeker's Allowance
  • Employment & Support Allowance
  • Some care at home/in residential care

Under the current rules - if you have over £6,000 capital you are at risk of having some or all of your benefits reduced. If you have over £16,000 then you are at risk of losing them all entirely.

A traditional Disabled Trust is usually founded by a third party for the benefit of another e.g. a child with a disability. It has certain tax and other advantages apart from fulfilling a protective function.

To speak to a member of our team, please call 01206 820638 Online enquiry

Dominic Littlewood explains the importance of appointing a Power of Attorney.


Having a Will is usually the first consideration in planning for your later years. However a Will usually only comes into effect when you die. In order to maintain your lifestyle, pay for aids and adaptions, pay for exprerienced care in your later years you need to have a .

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01206 820638
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