Property Protection Trust UK (2026): How It Works, Care Home Fees & Is It Right for You?

A property protection trust (PPT) is a type of will trust that takes effect when you die. Instead of your share of the family home passing outright to the surviving partner, it is placed into a trust — with the surviving partner having the right to live in the property for their lifetime (a 'life interest'). On the survivor's death, the property passes to the beneficiaries named in the trust (usually the children). This structure protects your share of the property from the survivor's potential remarriage, new dependants, creditors, or care home fee assessment.

In England, care home fees are assessed against the assets the surviving partner personally owns. If your share of the family home is held in a trust (rather than passing outright to the survivor), it is not owned by the survivor — so it cannot be counted in their care fee means-test assessment. The survivor's own share of the property is still assessed; only the deceased's share (held in trust) is protected. This partial protection is legitimate and accepted by local councils, unlike lifetime trusts which can be challenged as deliberate deprivation of assets.

Yes. Joint tenants cannot leave their share of a property by will — on death, the surviving joint tenant automatically inherits the whole property by right of survivorship, bypassing the will entirely. To use a property protection trust, you must own the property as tenants in common, with each partner holding a defined percentage share (usually 50/50). You need to sever the joint tenancy — a simple legal process called a 'notice of severance' — to convert to tenants in common. This is registered at the Land Registry. Without this, the trust in your will cannot work.

In practice, these terms are often used interchangeably. A life interest trust (also called an interest in possession trust or IPDI) gives a named person the right to live in the property or receive its income for their lifetime. A property protection trust is a life interest trust specifically created to protect the deceased's share of the family home. The key features are the same: the survivor has a right of occupation; the underlying capital is protected for the named beneficiaries; the survivor cannot sell the property without trustee consent.

Property protection trusts add complexity: the surviving partner cannot sell the property or release equity without the trustees' agreement. If the survivor wants to downsize, the trustees must cooperate and the trust must follow the funds into the new property. Trust administration requires careful record-keeping. If the relationship between survivor and children deteriorates, disputes over the property can arise. If the survivor needs to move into care but the property needs to be sold, the process involves trust formalities. PPTs work well for straightforward situations but can create friction in complex family circumstances.

Not directly — the asset is still in the survivor's estate for IHT purposes (as a life interest trust, it is treated as part of the life tenant's estate under s49 IHTA 1984). However, the Residence Nil Rate Band still applies on the second death as long as the property ultimately passes to direct descendants (children, stepchildren, grandchildren). The primary benefit of a PPT is asset protection, not IHT saving. For IHT planning, the standard NRB and RNRB allowances are the key tools.

A property protection trust is particularly suitable for: (1) married couples or civil partners in a second marriage with children from previous relationships — ensuring both sets of children inherit their parent's share; (2) couples concerned about the risk of a surviving partner entering a new relationship and disinheriting the children; (3) homeowners concerned about care home fee assessment of the surviving partner; (4) couples with a significant age gap where one partner may need care before the other. For a straightforward first marriage with shared children, a simple mirror will often gives equivalent results with less complexity.