Property Trust - Case Study
The People
Mr and Mrs C were married with 2 minor children. They owned a property worth £500,000 which was registered in Mr C’s sole name. They had limited other assets.
The Problem
If Mr C were to die without a Will, Mrs C would be entitled to the first £250,000 and any personal items, such as a watch, furniture, paintings etc. The rest of the value of the property would be split in two. One half would be held on trust for the 2 minor children until they reached age 18. The other half would be held on a trust under which Mrs C would be entitled to any income (or a right to live in a property owned by this trust) and, on her death, the fund would be split equally between the two children.
The Solution
Mr and Mrs C made simple Wills leaving everything to each other and then equally between their children on the second death. If Mr C were to die, Mrs C would be entitled to the house and any other assets in Mr C’s name. On her death, the children would benefit equally and no unnecessary and expensive trusts would have been required.
Who to contact
Paul Tobias
Senior Partner, Head of Trusts & Investments
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