The Lifetime Property Protection Trust (LPPT) is simply the most comprehensive trust of its type, designed to remove the concerns that many have when placing their home into trust.
The LPPT provides you with the peace of mind that you have done all that you can and have the professional support you need moving forward, to meet your objectives.
SOME OF THE BENEFITS OF THE LPPT
- As well as the usual Nil Rate Band, the LPPT can ensure that your estate can still benefit from an ADDITIONAL Inheritance Tax allowance called the Residence Nil Rate Band (RNRB) meaning a potential tax saving of up to £140k in Inheritance Tax (qualification criteria applies).
- Holding assets in a LPPT can ensure that these do not add onto your beneficiaries’ estates, increasing their own estate values on death and creating a much larger Inheritance Tax bill for future generations (their own beneficiaries) to pay and so losing more of their inheritance than necessary!
- Holding assets in a LPPT can ensure that, if your children/chosen beneficiaries were subject to divorce proceedings, what you intended them to receive could be better protected and remain in the family.
- Similarly, if your children/chosen beneficiaries run into financial difficulties and become subject to creditor claims/bankruptcy, then the LPPT could provide more protection from such claims, preventing their inheritance from being lost!
- The LPPT is a very tax efficient trust with NO tax to pay on entry, NO tax to pay on the 10 year anniversary and NO tax to pay on exit during the lifetime of the creator of the Trust (known as the Settlor).
- The LPPT can, in certain circumstances, also allow your loved ones to avoid probate delays, meaning that they have access to the trust’s assets when they are most needed.
- The LPPT can be extremely useful with clients who have lost capacity, to avoid the Office of the Public Guardian (OPG) restrictions when acting under a Power of Attorney, as the Trustees can administer the Trust assets on your behalf.
- The LPPT can be useful to mitigate or reduce third party threats such as Taxation, Divorce, Re-marriage, Creditors and Care costs in certain circumstances, albeit deliberate deprivation must always be taken into consideration and success can never be guaranteed.
The LPPT is not used for Inheritance Tax (IHT) gifting advantages, as the transfer would be a gift with reservation of benefit, because you continue to live in the house.
