These trusts offer home owners the benefits of having full control over their share of the property by severing the original tenancy and replacing it with the ‘Tenants in Common’ status.
If there were to be a third party claim against one partner, the other partner’s share of the property would remain secure. In addition, protective trusts offer trustees flexibility and control over how to employ the trust’s assets in the most appropriate way in order to ensure the best outcome for the beneficiaries.
Protective trusts are also a useful way to deal with inheritances being made to beneficiaries who might not use their inheritance in the way the settlors had intended – for example, if they are likely to become bankrupt or spend the money unwisely.
A ‘discretionary trust’ is a powerful tool which can help the trustees ensure that assets are not wasted by unwise choices or difficult circumstances.