Is a Lifetime Trust right for me?

You may have seen a lot of information about the benefits of placing your home into a trust. These are often referred to as Asset Protection Trusts, Living Trusts, or Lifetime Trusts. This tool is here to help guide you in making an informed decision.

Step 1: Your Trust Goals

To begin, please select all the statements below that resonate with what you are looking to achieve by setting up a Lifetime Trust.

You've selected 0 goals
Protect my home against care fees
Reduce my inheritance tax bill
Save time and money on Probate
Avoid probate waiting periods for my family
Prevent certain people claiming my house
Protect from beneficiary divorce
Prevent generational inheritance tax
Protect my house if I'm declared bankrupt
Protect beneficiaries from bankruptcy
Protect beneficiaries with addiction issues
Protect my assets from scams and fraud

Your Personalised Results

Based on your selections, here's what you should know about each of your goals:

Green: A trust will help for this
Amber: It could help but be aware
Red: A trust will not work for this

Additional Considerations

Before making a final decision about setting up a Lifetime Trust, we need to consider a few more important factors that could affect your situation.

Question 1: Do you have a mortgage on the property?

Mortgage Considerations ⚠️ Be Cautious

It’s usually not a good idea to put your home into a trust if it still has a mortgage. Most traditional lenders don’t like lending on property that’s held in trust—they prefer the owner to be a person, not a trust.

If you later want to remortgage, you might have to take the property out of the trust first. This involves a legal process with HM Land Registry, which can take time and cause delays. On top of that, there are likely to be exit fees for taking the property out of the trust.

So, if you still have a mortgage or think you might want to remortgage in the future, it’s worth thinking carefully before putting your home into a trust.

Question 2: Can you be sure that you will not need to lend against the property in the future (mortgage or equity release)?

Future Lending Considerations ⚠️ Be Cautious

It’s usually not a good idea to put your home into a trust if it has a mortgage—or if you think you might want to get a mortgage or equity release in the future. Most traditional lenders, including equity release providers, are very reluctant to lend on properties held in trust. They generally prefer to deal with individuals, not trusts.

If you later decide to borrow against your home, you may have to take it out of the trust first. This involves a lengthy process with HM Land Registry and could delay your plans. There are also likely to be exit fees for removing the property from the trust.

So even if your home is mortgage-free now, putting it into a trust could limit your options later if you need to borrow money or unlock equity. It’s important to think ahead before making that decision.

Ready to Take the Next Step?

Hopefully this tool has helped you make a fully informed decision. Settling your home into a trust should not be taken lightly.

If you would like to discuss your options in more detail, book an appointment with Joshua Young:

Thank You for Using Our Trust Questionnaire

We appreciate you taking the time to explore your options regarding Lifetime Trusts. While a trust may not be the right solution for all your needs, there are other estate planning tools that might be more suitable.

Joshua Young

Joshua Young

Estate Planning Specialist

Joshua specialises in Wills and Lasting Powers of Attorney, helping clients protect their assets and ensure their wishes are carried out.

Would you like to discuss your Will or Lasting Power of Attorney options? Book a free consultation with Joshua Young: