WillPack

PPTs: Concerns with Mortgages and Equity Release

By | Trusts | One Comment

PPTs: Concerns with Mortgages and Equity Release PPTs and Mortgages Should clients wish to use Protective Property Trusts (PPTs) in their Wills with a property that is subject to a mortgage, they should be aware that a share of the property cannot enter a PPT on first death as technically until the mortgage has been settled the clients do not fully own the property. The most simple solution to this would be to ensure that both clients have life cover in place to cover the mortgage on first death. Alternatively, if the Residuary Estate would have enough assets to fully cover the mortgage on first death, the Executors could use the Residue to pay the outstanding mortgage off. If on death there is still a mortgage on the property and neither of these are possible, the survivor does still have limited options; They can sell and downsize if the PPT…

Read More