When planning for your family’s future, protecting your home and assets is often a top priority. At Kirstys Law, we’re frequently asked about the difference between Asset Protection Trusts and Property Protective Trusts—two popular options for safeguarding what matters most. Here’s what you need to know to make the right choice for your circumstances.
What Is an Asset Protection Trust?
An Asset Protection Trust is a legal arrangement that allows you to transfer ownership of your assets—such as property, savings, or investments—into a trust. The assets are managed by trustees (people you choose) for the benefit of your chosen beneficiaries. The main aim is to safeguard your wealth from risks such as:
- Future care fees
- Creditors or bankruptcy
- Family disputes or relationship breakdowns
This type of trust is often chosen by people who want to keep their assets safe for the next generation, especially if they’re worried about unpredictable life events or claims against their estate.
What Is a Property Protective Trust?
A Property Protective Trust (sometimes called a “life interest trust” or “protective property trust”) is designed specifically to protect your share of the family home. This is especially useful for:
- Blended families (where there are children from previous relationships)
- Couples who want to ensure their share of the home goes to their chosen beneficiaries (often children)
- Protecting against the risk of a surviving spouse or partner remarrying or changing their will
With this trust, your share of the property is placed into a trust when you pass away. The surviving partner can continue living in the property for life, but your share is ultimately protected for your chosen beneficiaries.
Key Differences at a Glance
| Feature | Asset Protection Trust | Property Protective Trust |
|---|---|---|
| What can go in? | Property, savings, investments | Usually just your share of home |
| When is it set up? | During your lifetime | Usually via your will (on death) |
| Main purpose | Shield assets from risks | Protect home for beneficiaries |
| Who benefits? | Anyone you name | Surviving partner & chosen heirs |
| Popular with | Those wanting broad protection | Blended families/homeowners |
Which Trust Is Right for You?
-
Choose an Asset Protection Trust if:
You want to protect a variety of assets (not just your home) from risks like care fees, creditors, or disputes, and you want to set this up during your lifetime. -
Choose a Property Protective Trust if:
Your main concern is protecting your share of the family home—especially for blended families—so your children or chosen beneficiaries are not accidentally disinherited if your partner remarries or changes their will after your death.
Frequently Asked Questions
Will either trust guarantee my home is protected from care fees?
No trust can guarantee this, as local authorities may challenge arrangements they believe are made solely to avoid care costs. It’s important to seek tailored legal advice.
No trust can guarantee this, as local authorities may challenge arrangements they believe are made solely to avoid care costs. It’s important to seek tailored legal advice.
Can I set up both types of trust?
In some circumstances, yes—especially if you have multiple assets or complex family situations. We can advise on the best structure for your needs.
In some circumstances, yes—especially if you have multiple assets or complex family situations. We can advise on the best structure for your needs.
How Kirstys Law Can Help
Choosing the right trust is a big decision. At Kirstys Law, we specialise in helping families across Llanelli, Swansea, and Carmarthen protect their homes and legacies. We offer free consultations and clear, honest advice—no jargon, just solutions that fit your life.
Contact us today:
📞 01554 700502
📧 info@kirstyslaw.co.uk
🏢 First Floor, St Elli Shopping Centre, Llanelli SA15 1SH
🌐 www.kirstyslaw.co.uk
📞 01554 700502
📧 info@kirstyslaw.co.uk
🏢 First Floor, St Elli Shopping Centre, Llanelli SA15 1SH
🌐 www.kirstyslaw.co.uk
Let’s make sure your wishes are protected and your family’s future is secure.
Disclaimer: This blog is for general information only and does not constitute legal advice. Please contact us for advice tailored to your specific circumstances.