If you’re married or in a long-term relationship and own your home, one of the biggest questions is:

“What actually happens to the house when one of us dies?”

Most couples assume the answer is simple: “Everything just goes to my spouse, then to the children.” But that approach can create problems later on, especially where there are concerns around care fees, remarriage, or protecting your children’s inheritance.

A Property Protection Trust in a Will (PPT) is designed to deal with exactly these situations.

Why Leaving Everything to Your Spouse Can Be Risky

Leaving everything outright to your spouse is common, and fine for lots of families, but that means:

• The entire property becomes 100% theirs
• They can change their Will
• The estate can be affected by remarriage or new relationships
• The full value may be exposed if they later need long-term care

Many of the homeowners we meet around Macclesfield and Cheshire are concerned about the effects of remarriage or long term care fees and what that means to the legacy they can leave.

What if your spouse remarries?

If everything passes outright:

• Your share becomes part of your spouse’s estate
• If they remarry, the original Will is revoked
• The estate may pass to the new spouse

According to the Office for National Statistics, 15% (38,320) of all marriages in the UK are remarriages, and 19% (48,880) of all marriages involve one partner who has been married before.

What if your spouse goes into care?

If the whole property is owned by the survivor, the full value sits within their estate and is part of the financial assessment considered when care is needed. In Cheshire, family members can expect to pay in the region of £1500 per week (£78,000 per year) if they are fully self funding.

It doesn’t take long for the average house to be used up completely.

This is one of the main reasons people start looking at Trusts.

What Is a Property Protection Trust?

A Property Protection Trust (PPT) is a Trust that is written into your Will.

To make this happen, it typically means changing the ownership of your home as tenants in common (you can read more about that here).

So when the first person dies:

• Their share of the property is placed into a trust for the children
• The surviving spouse has a right to live in the property
• Children cannot force them out of the home
• They can have the rights to sell and downsize
• That share is passed to the chosen beneficiaries when they die

In simple terms It protects your share of the house while still looking after your partner.

Does This Help With Care Fee Planning?

This is one of the most common reasons people look at this type of planning.

A Property Protection Trust works by ensuring the first person’s share is not the property of the survivor so not used to fund their care later in life.

So you give your spouse a home for life but they cannot pass it on to a new partner and it will not be eaten up by care fees should they require that in the future.

Our Property Protective Trust Wills are drafted carefully to ensure the survivor has everything they need, without giving access to capital that can be lost later.

If you’re exploring this specifically from a care fees perspective, it’s also worth reading: Why you should never sign your house over to your children.

What About Second Marriages or Blended Families?

This is where Property Protection Trusts become especially important.

If you are remarried, in a second relationship or have children from a previous relationship then a PPT allows you to ensure your new partner is secure whilst still protecting your children’s inheritance.

While every couple who comes to Moneybox Wills and Trusts don’t believe their partner would disinherit their children, many do.

We see a lot of clients who amend their Wills later in life and disinherit step children. Sometimes there can be relationships break down or disputes over the Will. Sometimes it is simply because time has moved on and step children are no longer part of their lives.

Either way, It is a very real threat and more likely than people would like to admit.

What about deprivation of assets? 

This is where Property Protection Trust differ from Family Trusts.

Many of the couples who come to see us say “We have been told we need to put our house into a trust”. 

If you put your house into a Family Trust, the local authority can look into intent and timing and may view the disposal as a deprivation of assets. In those cases they can still include the value of the property in the means testing assessment.

With PPTs, nothing has been given away, so their is no deprivation. You have owned your share of the property until you have died, and then you have left that property in your Will.

The fact you didn’t leave it to your spouse is your business.

What About Lasting Power of Attorney (LPA)?

You cannot have a conversation about asset protection and care planning without discussing Lasting Power of Attorney.

An LPA is a critical part of the plan and ensures that your finances and healthcare decisions are managed by your chosen family members or friends. This means that your Attorneys have the ability to manage your property and your finances efficiently and can choose the appropriate care setting. Helping you get the right level of care in a financially responsible manner.

Final Thoughts

A Property Protection Trust is not about making things complicated. Instead, it is about putting the right structure in place while you still can.

PPTs allow you to:

• Protect your share of the home
• Look after your partner
• Ensure your children benefit later
• Not leave things to chance

Every situation is different. If you’re not sure whether a Property Protection Trust is right for you, or how it should be structured, it’s worth having a proper conversation with an experienced advisor.

Call Moneybox Wills and Trusts on 01625 573521 today.

The post What Is a Property Protection Trust in a Will? appeared first on Moneybox Wills and Trusts.

Many people ask us about setting up a Family Trust because they want to protect their home, reduce risk and make sure their children ultimately benefit.

Very often, the concern behind the question is care fees.

They have heard that “putting the house in trust” might protect it, and they want to know whether that is the right move.

Sometimes it is. Often it is not.

In this article, we explain what people usually mean by a Family Trust, when it can be useful, where the risks are, and why a simpler option such as Will Trusts may be more appropriate for many couples.

What do people mean by a “Family Trust”?

“Family Trust” is a broad description, not a separate legal category in its own right. In practice, the legal and tax treatment depends on the actual type of trust being used, such as a discretionary trust or an interest in possession trust. GOV.UK lists the actual trust types that HMRC recognises and the taxation treatment of each.

When most people ask us about a Family Trust, they usually mean one of two things:

• a trust set up during lifetime to hold assets such as a house or investments
• a trust created by a Will, often to give a surviving spouse security while preserving capital for children

Those are very different things, with very different consequences.

In this article, we shall use the phrase “Family Trusts” to mean Trusts set up during your lifetime where assets such as your home are transferred into them.

Why do people look at Family Trusts?

For most families, the motivation is not tax planning in the technical sense. It is protection.

Common concerns include:

• Wanting children to inherit eventually
• Worrying about the effect of remarriage after the first death
• Wanting to ringfence part of the estate
• Concerns about a beneficiary’s ability to manage money
• Trying to reduce the risk of the family home being used up by care fees

That last point is the big one. A lot of people look at trusts because they are worried about losing the house to residential care costs in the future.

And who can blame them? In Cheshire, families can expect to pay in the region of £1500 per week if they are fully self funding.

Can a Family Trust protect against care fees?

This is where people often get oversold.

A trust is not a magic shield against care fees.

Under the Care Act guidance, a local authority can treat someone as still having assets they gave away or moved if it decides they deliberately reduced their assets to avoid care charges. This is known as deprivation of assets. Age UK explains the same point plainly: if the council decides assets were reduced to avoid charges, it may still assess the person as if they still owned them.

So if someone puts their house into a trust mainly to avoid future care fees, that can be challenged.

That does not mean trusts are pointless. It means the reasoning, timing and structure matter. A trust used for proper estate planning can still have value. But if the pitch is simply “put your house in trust and the council cannot touch it”, you should be very cautious.

You can also read about Why you should never sign your house over to your children here. 

What are the benefits of a Family Trust?

Used in the right situation, a Family Trust can offer real advantages.

It can help you:

• Control who benefits and when
• Protect assets from being handed outright too early
• Provide a framework for more complex family circumstances
• Preserve flexibility if trustees need to respond to changing needs
• Hold wealth across generations rather than passing everything absolutely on first death

That flexibility is often why people like the idea.

For some families, especially where there are multiple beneficiaries, previous relationships, vulnerable beneficiaries or wider asset-protection concerns, a Trust can be the right tool.

What are the risks or downsides?

This is the part many people are not told clearly enough.

A Family Trust can bring:

• More complexity
• Ongoing trustee responsibilities
• Possible registration and administration requirements
• Tax consequences that are not always obvious
• Higher setup and ongoing costs than simpler planning

From a tax point of view, lifetime transfers into many trusts can trigger Inheritance Tax consequences. HMRC states that where assets are transferred into trust during lifetime, charges can arise, including a 20% lifetime charge in some cases above the available nil-rate band, and further charges can arise if the settlor dies within seven years. Relevant property trusts can also face ten-year and exit charges.

That is one reason a complex trust is not automatically the best answer for a straightforward husband-and-wife estate.

So do you actually need a Family Trust?

The real question is “Would a Family Trust benefit me?”

Sometimes yes.

But in many cases, no.

A full Family Trust may be worth looking at where:

• The estate is larger or more complex
• There are children from previous relationships
• There are concerns about how beneficiaries may use money
• Trustees need wide discretion
• The objective goes beyond simple protection of the survivor and the children

However, many couples who enquire about Family Trusts are not really asking for a complex trust structure.

What they actually want is something much more specific:

• Allow the surviving spouse to stay in the home
• Make sure the children inherit later
• Reduce the risk of the first spouse’s share being diverted away from the intended family line
• Create a degree of protection without unnecessary complexity

For that, a simpler Will Trust may be the better answer.

What is a Will Trust?

A Property Protection Will Trust is a trust that is created on death which gives someone, often a surviving spouse, a right to benefit from assets after the first death. For example, the right to live in the family home or receive income for life while preserving the underlying capital for the beneficiaries, usually the children. HMRC recognises an IPDI as a specific form of qualifying interest in possession arising under a Will or intestacy, and GOV.UK explains that an interest in possession can include the right to use or occupy property such as the family home.

In plain English, it often works like this:

• The first spouse dies
• Their share passes into trust under the Will
• The survivor can continue living in the property
• When the survivor later dies, that share passes to the children or other chosen beneficiaries

The benefit of this is that if the surviving spouse needs long term care, half of the property is ringfenced for the family. Providing protection for the surviving spouse but ultimately ensuring a legacy for your children.

You can read more about Will Trusts here. 

Why is a Will Trust often a simpler alternative?

For many married couples or long-term partners, a Will trust achieves the practical objective more neatly than a broader Family Trust.

It can:

• Give the survivor security
• Preserve the first person’s share for children
• Help in blended family situations
• Avoid handing capital outright where that is not appropriate
• Avoid IHT issues

That does not mean it is a cure-all for care fees.

But it often fits the real objective better than a more complex Family Trust, especially where the concern is protecting the first spouse’s share rather than trying to move the whole house out of reach.

If you’d like clear advice on the right level of planning for your family, you can book a free consultation here or call us on 01625 573521 and we’ll talk it through with you.

Family Trust vs Will Trust: the practical difference

A broad Family Trust is often about flexibility and control across a wider set of circumstances.

An Will Trust is often about a simpler and more focused outcome:

• Protect the surviving spouse
• Preserve capital for the children
• Keep the planning proportionate

If your estate is relatively straightforward and your real goal is to protect your family without overcomplicating things, a Will Trust can be the more sensible route.

The key question to ask

The real question is not:

“Can I put my house into a trust?”

It is:

“What am I actually trying to achieve?”

If the answer is:

• “I want my spouse to be secure”
• “I want my children to inherit eventually”
• “I do not want unnecessary complexity”

Then a full Family Trust may be more complicated than you need.

Our view

We do set up Family Trusts where they are genuinely appropriate.

But, unlike many other firms, we do not believe in recommending a more complex solution where a simpler one will do the job properly.

For many couples in Macclesfield and the wider Cheshire area, the right answer is not “the biggest trust possible”. It is the structure that matches the family, the estate and the actual objective.

That might be a Family Trust.

It might be a Will Trust.

It might even be a different form of estate planning altogether.

If you would like to know more about Property Protection Trusts, read our other article here.

Final thoughts

A Family Trust can be a powerful planning tool, but it is not the right answer for everyone.

If you are mainly looking at trusts because of care fee worries, it is especially important to get proper advice before doing anything. The rules around deprivation of assets are real, and the wrong structure can create cost and complexity without delivering the benefit you expected.

Often, the best plan is the one that achieves your goals in the simplest, clearest and most cost-effective way.

If you are not sure whether you need a Family Trust, a Will Trust, or something simpler, that is exactly the point at which advice adds value.

Call Moneybox Wills and Trusts on 01625 573521 today.

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Most people own their home as “joint tenants” without ever realising there’s another option.

But the way your property is owned can have a significant impact on what happens to your share when you die—and whether your wishes are actually carried out.

That’s where “tenants in common” comes in.

“Tenants in common” a term many people have heard, but few fully understand. In this article, we’ll explain what it means, how it works, and why it can be an important part of your estate planning.

What Does “Tenants in Common” Mean?

When you own a property as tenants in common, each owner holds a distinct share of the property.

This doesn’t necessarily mean a physical split. It simply means each person owns a defined percentage, which can be equal or unequal.

For example:
• 50/50 between partners
• 70/30 if one person contributed more
• Any other agreed proportion

The key difference is that each person’s share forms part of their estate when they die.

Most couples own their property as joint tenants. If you say, “we own our house jointly”. This means you are joint tenants.

With joint tenancy, if one person dies, their share automatically passes to the surviving owner, regardless of what their Will says.

This is known as the “right of survivorship”.

With tenants in common, there is no automatic transfer. Instead, your share passes according to your Will.

Why This Matters in Practice

This might seem like a small difference, but in practice it can have a significant impact.

We regularly speak to families around Macclesfield and Cheshire who assume everything will simply pass to their partner and then to their children.

However, without the right structure in place, that isn’t always guaranteed.

For example:

• If everything passes outright to a surviving partner, those assets could later be exposed to care fees
• If the surviving partner remarries, your original wishes may no longer be followed
• Children from previous relationships may not be protected
• There is no control over where your share ultimately ends up

Holding your property as tenants in common, combined with the right Will, can help address these issues.

When Might Tenants in Common Be Appropriate?

Tenants in common is often used where people want more control over what happens to their share of a property.

This might include:

• Couples who want to protect part of the property for their children
• Blended families where there are children from previous relationships
• Situations where unequal contributions have been made
• Estate planning where long-term protection is a priority

It’s not about complicating things. It’s about making sure your arrangements reflect your intentions.

Common Mistakes We See

Many people don’t know how their property is currently owned. If you are unsure it may be safe to assume you are joint tenants.

Families are often unaware that a standard Will does not protect anything, or understand that it is possible to protect your share of the property when you die.

In reality, most families want to safeguard their property, or their share of it, but do not know that they can, or how.

That is where Moneybox Wills and Trusts can help.

How Do You Change to Tenants in Common?

You can usually change ownership from joint tenants to tenants in common quite easily.

It involves a process called “severance of joint tenancy”, along with updating the Land Registry records.

However, this should always be considered alongside your Will to ensure everything works together properly.

Done correctly, it creates a structure that reflects your wishes and provides greater clarity for the future.

Do I Need to Change My Will If I Am Tenants in Common?

Simply owning your property as tenants in common does not, on its own, protect your share of the home.

All it does is allow your share of the property to pass under your Will rather than automatically to the other owner.

What actually happens to that share then depends entirely on how your Will is structured.

In many cases, we see people who have changed their ownership to tenants in common, but still have a basic Will that leaves everything outright to their partner. In that situation, much of the intended protection can be lost.

To make this effective, it is usually combined with a Will that includes a form of Trust. This allows your share of the property to be preserved for your beneficiaries.

Still allowing the surviving partner to continue living in the property for the rest of their life.

This preserves your share from future care fees and shields it from second marriages or family disputes after you are gone.

When set up correctly, this approach can provide both flexibility and long-term protection for your family.

As with any estate planning, the key is making sure everything works together rather than relying on one element alone.

Final Thoughts

Tenants in common is a simple concept, but understanding the difference and taking advantage of the protections this can give can make a significant difference to how your estate is passed on.

If you’re not sure how your property is owned, or whether your current arrangements reflect what you want, Moneybox Wills and Trusts can help.

Arrange a FREE initial consultation to understand your current situation and whether being tenants in common could benefit you and your family.

Call Moneybox Wills and Trusts on 01625 573521 today.

The post Tenants in Common. What It Means and Why It Matters appeared first on Moneybox Wills and Trusts.

One of the most common concerns we hear from families across Macclesfield and Cheshire is this;

“Can the council take my house to pay for care?”

For many people, their home is their largest asset and something they hope to pass on to their children. The idea that it could be used to fund care fees can feel worrying and, in some cases, unfair.

However, the situation is often misunderstood. The answer is not a simple yes or no. It depends entirely on circumstances, ownership structure, and timing.

In many cases, there are ways to plan ahead and protect your position if things are structured properly.

How Care Fees Are Assessed in England

If someone moves permanently into residential care, the local authority carries out a financial assessment, often called a means test. In England, if your capital exceeds the upper threshold (currently £23,250), you are generally expected to fund your own care. 

Capital can include: Savings, Investments and Property 

However, your home won’t automatically be taken from you, which is what families are worried about.

The key question is whether it is included in the assessment. Or how much.

Does the Council Actually Take Your House?

The council does not simply seize ownership of your home.

If your property is included in the assessment and you do not have enough liquid savings to pay for care, the local authority may offer a Deferred Payment Agreement.

This means the council effectively loans the care fees, using your property as security. That way the property does not have to be sold immediately and could even be rented out.

The debt is repaid later, usually when the property is sold.

While this can still result in the home being sold eventually, it is not the same as the council taking ownership outright or forcing a sale.

Many people assume the solution is to give their house away or make changes too late. Both of which can create serious problems.

So What Can You Do?

While no strategy can guarantee that care fees will never be payable, sensible estate planning can reduce the amount of your estate that is lost.

In many cases, the right approach is to plan properly within your Will, so that your share of the property is protected while still allowing your partner to remain secure.

Moneybox Wills and Trusts can help you create Wills that can ringfence your share of the property. Shielding it, should the survivor need care later. If you have any questions about this then call us on 01625 573521

Writing a Trust into your Will.

A carefully drafted Will can direct the first spouse’s share of the property into a life interest trust.

This allows the surviving spouse to continue living in the home for life. At the same time, the first spouse’s share is preserved for chosen beneficiaries, often children.

While this does not remove care fee liability entirely, it can mean that only the survivor’s share is exposed in certain circumstances.

This approach is long-established, mainstream Will planning. It is not about hiding assets. It is about structuring ownership sensibly and careful planning through a Will.

If you would like to find out how to structure your Will to protect your share of your home, book a FREE consultation today. 

Can I give my house to my children to avoid care fees?

Gifting your home can be challenged if the local authority believes the intention was to reduce care costs. Gifting away your home can also pose serious risks and tax implications. So, we would always advise against giving away your home.

Final Thoughts

So, can the council take your house to pay for care fees?

Your home is not automatically taken. It may be included in a financial assessment depending on your circumstances and attempts to give it away purely to avoid fees can be challenged.

However, writing a trust into your Will can often protect part of the family home and sometimes other assets after the first death in a married couple.

Most people we speak to have been meaning to sort this out for years before taking action. The sooner things are put into place, the less worries you have. 

If you would like to understand what options may be available in your circumstances, we offer a free consultation to discuss your position in confidence.

Call Moneybox Wills and Trusts on 01625 573521 today.

The post Can The Council Take My House to Pay For My Care? appeared first on Moneybox Wills and Trusts.

One of the most common conversations we have with clients at Moneybox Wills & Trusts starts with a simple question:

“Do I need a Trust?”

The confusion is completely understandable. Wills and Trusts are often talked about together, sometimes interchangeably, and much of the information online oversimplifies the differences. As a result, many people either assume a Will is enough when it may not be, or believe trusts are only for the very wealthy.

In reality, Wills and Trusts do very different jobs. Understanding the difference between a Will and a Trust, how each works and how they can work together will help you to decide what is best for you and your family.

In this article, we explain:

• What is a Will
• What is a Trust
• How Wills and Trusts differ
• How Trusts can be included within Wills
• When a Will and a lifetime Trust may work alongside each other

What Is a Will?

A Will is simply a legal document that sets out what should happen to your estate when you die. It allows you to decide who inherits your assets, who will deal with your estate (your executors), and who should care for minor children if applicable.

A Will takes effect on death. Until then, it offers no protection over your assets during your lifetime. While a Will is the cornerstone of estate planning, it does have many limitations.

For example, a basic Will cannot control what beneficiaries do with their inheritance once they receive it. It also does not protect assets from risks such as remarriage, divorce, bankruptcy, or care fees for a surviving spouse after your death.

Lets say a legacy is left to a person who may not manage the funds responsibly. With a basic Will, the testator (person making a Will) cannot influence how the funds are managed. Or if an estate is left to a spouse, that spouse may remarry, passing the estate outside of the original family, or they need long term care in the future, eroding the estate and reducing what is left for children.

This does not mean a Will is ineffective. Everyone should have one, regardless of their net worth. However, it is important to understand that a simple Will only answers the question “Who gets what?” not always “How, when, or under what conditions?”

What Is a Trust?

A Trust is not a document in the same way a Will is. Instead, it is a legal structure that holds assets and control how they are used.

Trusts are a very broad subject, with many different variations. However, most family and estate planning trusts fall into two main structural categories:

• Discretionary Trust
• Interest in Possession Trust (often called life interest trusts)

Other types of trust often sit within or alongside these two broad structures.

When a Trust is created, assets are placed under the control of trustees. The trustees must manage those assets according to a set of rules, for the benefit of one or more beneficiaries.

Unlike a Will, a Trust can operate during your lifetime, after your death, or both. Its main purpose is to provide control, protection, and flexibility over assets. Whereas a Will just passes something to somebody.

In simple terms, if a Will is an instruction that takes effect when you die, a Trust is a framework that governs how assets are looked after or passed on over time.

In a lot of circumstances, a Will is absolutely fine in this way. If there are no reasons to control or manage an asset, a Trust can be an unnecessary complication.

For others, the control and flexibility of a Trust is essential.

If you are unsure whether a Trust is right for you, or if a simple Will is enough, book a FREE consultation today. 

How Do a Will and a Trust Differ?

Although Wills and Trusts are often mentioned together, they are not alternatives to one another. They perform different roles within estate planning.

Many clients who come to us will say “I have been told I need a Trust”

While It is unlikely they need a Trust, our roll is to explore with them how using Trusts may benefit them over just a simple Will.

A Will is primarily about distribution. It comes into force only on death and directs where assets should go. A trust, on the other hand, is about management and control. It can restrict access to assets, protect them from certain risks, and allow decisions to be made over time rather than all at once.

Another key difference is timing. A Will does nothing until you die. A trust may already be operating while you are alive, which can be crucial in certain family or financial situations.

Understanding this distinction helps explain why families use both.

Wills That Include Trusts

One important point that often gets overlooked is that many professionally drafted Wills already include Trusts.

In these cases, the Trust is created by the Will itself and comes into effect after death. The Will sets out the rules of the Trust and appoints trustees to manage it.

Common examples include Trusts for children who are under a certain age, Trusts that allow a surviving spouse to live in the family home while protecting the inheritance for children (life interest trusts), or Trusts designed to add flexibility and protection for vulnerable family members (Discretionary trusts).

This is why estate planning is rarely about choosing a Will or a Trust. Very often, it is about deciding which Trusts, if any, your Will should include.

Wills Alongside Lifetime Trusts

There is another scenario that causes confusion, and that is where a Will operates alongside a separate lifetime Trust.

A lifetime Trust is set up during your lifetime and exists independently of your Will. Assets placed into a lifetime Trust do not pass under the terms of your Will, because they are no longer owned by you personally.

In these situations, the Will and the lifetime Trust must work together. The Will deals with assets that remain in your estate, while the Trust governs assets that have already been placed into the Trust structure.

For example, a person may transfer their property into a family Trust during their lifetime and their Will would sit along side that to distribute the rest of their estate.

Lifetime Trusts are most beneficial for families who wish to remove assets from their estate while retaining some control, sometimes for a specific purpose or do not want to gift assets directly to their children at that time.

When Might Having Both Be Beneficial?

Not everyone needs a lifetime Trust. However, there are situations where a simple Will alone may not be enough.

For example, clients in second marriages often want to ensure a surviving spouse can live in the property, while also protecting children’s inheritance. Others are concerned about safeguarding assets for vulnerable beneficiaries, or about protecting family wealth over the long term.

In higher-value estates, lifetime Trusts may also form part of inheritance tax planning, provided they are set up carefully and with professional advice. Families must be aware of HMRC rules when gifting assets to trust that they may wish to benefit from personally.

In these circumstances, a Will and a lifetime Trust working together can offer a level of control and reassurance that a Will on its own cannot.

Another example may be families who have surplus funds and need to reduce their estate for Inheritance Tax purposes. They may choose a lifetime Trust so that they can gift away assets but want those funds to be used for property purchases, setting up a business or simply held until the appropriate time.

Final Thoughts

A Will is essential for everyone, regardless of the size of their estate. Trusts are not essential for everyone, but they can be extremely valuable in the right circumstances.

The key is understanding that Wills and Trusts are not competing options. Each have their own merits and should be looked at as tools that can be used individually or together, depending on your family, your assets, and your long-term goals.

Think of it this way, if you want somebody to have something and don’t mind what happens to that legacy after your death, a simple Will is fine. However, If you want to control or influence what happens with that legacy then a Trust structure may be better for you.

If you are unsure whether a simple Will is enough, or whether a Trust could benefit your situation, professional advice can make all the difference.

At Moneybox Wills & Trusts, we help families across Macclesfield and Cheshire put clear, practical plans in place. If you would like to understand your options, arrange a free initial consultation to help you decide the right approach for you and your family.

Call Moneybox Wills and Trusts on 01625 573521 today.

The post What’s the Difference Between a Will and a Trust? appeared first on Moneybox Wills and Trusts.

Inheritance Tax (IHT) is a concern for many families across the UK. With rising property values, more estates than ever are at risk of being taxed. For example, 2022/2023 the Treasury collected £6.7Billion from families in the UK through IHT, a largely avoidable Tax for many families, and understanding your inheritance tax allowances is the first step.

Fortunately, the government provides inheritance tax allowances that can reduce or even eliminate your IHT liability. The key to using them effectively is understanding how they work.

In this article, we’ll break down:

• The Nil-Rate Band (NRB)
• The Residence Nil-Rate Band (RNRB)
• How to calculate what you may be entitled to
• Examples to help you understand your position

What Is the Nil-Rate Band (NRB)?

The Nil-Rate Band is the basic IHT allowance available to everyone. Nil-Rate Band = The amount your estate can leave before Inheritance Tax is paid. Think of your personal allowance with income tax.

• Current threshold: £325,000 per person
• Married couples / civil partners: Can combine allowances to leave up to £650,000 tax-free.

Anything in your estate above this threshold is generally taxed at 40%.

Residence Nil-Rate Band (RNRB)

The RNRB is an additional allowance introduced to help families pass on the family home without incurring as much IHT. However, there can be some exemptions.

• Current threshold: Up to £175,000 per person
• Only applies when: You pass your home (or part of it) to direct descendants (e.g., children, grandchildren)
• Combined with NRB: Married couples can potentially pass on up to £1 million tax-free (£650,000 NRB + £350,000 RNRB) This means many families around Macclesfield and Cheshire have nothing to worry about.

Important: You Can’t Claim More RNRB Than the Home Is Worth

One common misconception is that everyone automatically gets the full RNRB (£175,000 or £350,000 per couple). While this is true for many families, you will see that not all families do, and the result of not understanding the inheritance tax allowances correctly can cost thousands.

This can be a very expensive mistake, costing families many thousands in unexpected Inheritance Tax.

However, the RNRB is capped at the value of the property (or share of it) which is being passed passed to direct linear descendants.

Example:

• Home value: £250,000
• Left to children
• RNRB limited to £250,000 (not the full £350,000)

This means a couple leaving a property worth £250,000 would only be able to claim £250,000 in RNRB (not the full £350,000).

Who Qualifies for These Allowances?

To benefit from RNRB:

• You must own a home or a share of one
• It must be passed to direct linear descendants.
• The home must be part of your estate when you die

On the other hand, If you have downsized or sold your home, a downsizing addition may apply, but that requires careful record-keeping and planning.

Calculating Your Inheritance Tax

Here are three examples that show how this works in practice:

1. Full Allowance Example

Mr. and Mrs. Green:

• Own a home worth £500,000
• Total estate worth £800,000
• Leave everything to their children

Calculation:

• NRB: £325,000 x 2 = £650,000
• RNRB: £175,000 x 2 = £350,000
• Total tax-free: £1,000,000
• Estate value: £800,000

Result: The value of the property is greater than £350,000 so all available RNRB can be claimed. Which means, no IHT to pay

2. Reduced RNRB Example

Mr. and Mrs. Brown:

• Own a home worth £200,000
• Total estate worth £700,000
• Leave everything to their children

Calculation:

• NRB: £325,000 x 2 = £650,000
• RNRB: Limited to £200,000 (value of home)
• Total tax-free: £850,000, but only ¨50,000 needed
• Estate value: £700,000

Result: Also, no IHT to pay (even though they can’t claim full RNRB, their estate is still under the total NRB available)

3. Estate Under £1 Million But Still Pays IHT

Mr. and Mrs. Taylor:

• Home worth £300,000
• Total estate: £800,000 (includes pensions and savings)
• Leave estate to children

Calculation:

• NRB: £325,000 x 2 = £650,000
• RNRB: Limited to £300,000 (property value)
• Total allowances: £950,000
• Estate value: £950,000

Taxable amount: £900,000 – £850,000 = £50,000
IHT due: £50,000 x 40% = £20,000

Result: Even though their estate is under £1 million, they pay IHT because Mr and Mrs Taylor couldn’t claim the full RNRB.

RNRB Tapering

That said, many families need to be aware of the tapering applied to the RNRB which can reduce the amount of RNRB available. For estates over £2 Million, the RNRB is reduced by £1 for every £2 over £2 Million.

This means that estates over £2.7 Million see their RNRB reduced to Zero, resulting in an IHT liability of 40% of everything over £650,000 (For a married couple)

Final Thoughts

Had Mr and Mrs Taylor understood their allowances, they could have taken steps to reduce their estate and reduce or eliminate the amount of IHT they paid. Instead, they assumed, as many families do, that their estate fell inside the combined NRB and RNRB.

In conclusion, understanding how the NRB and RNRB work is crucial to effective estate planning. Many people mistakenly believe they’re entitled to a full £1 million exemption, only to find out their home value or family structure reduces that.

Working with a professional ensures your Will, Trusts, and estate are structured to make the most of your allowances so that your family inherits more, not less.

Need help calculating your IHT position?
Book a free consultation with Moneybox Wills & Trusts at our Macclesfield office today and get expert advice on how to protect your home and your family.

Call Moneybox Wills and Trusts on 01625 573521 today.

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At Moneybox Wills & Trusts, we speak with lots of families every year about why you should never sign your house over to your children to avoid inheritance tax. It’s a question we hear more often than you’d think.

Time and time again people will ask:

“Can I just sign my house over to my children to avoid inheritance tax?”

Sometimes it’s a suggestion from a friend. Other times it’s something they’ve read online or heard second-hand, the idea that simply gifting the home removes it from the estate. Often then citing the “7 Year Rule”.

We completely understand the thinking. But almost every time, our advice is the same:

This is one of the worst ways to try to reduce inheritance tax.

It might seem simple, but the reality is very different, and will almost always cost you much more in the long run.

The Most Common Scenario We Hear

Many of our clients want to help their children and assume that giving them the house early will protect it. They often say things like:

• “If I give them the house now, it won’t be taxed when I die, right?”
• “We’re going to live here for life, but want to get it out of our estate.”
• “A friend told me I should just sign it over and avoid probate.”

In reality, giving your house away while continuing to live in it almost never achieves what you’re hoping for, and it often makes the situation worse.

Why You Should Never Sign Your House Over to Your Children.

If you gift your home but continue to live in it without paying full market rent, HMRC treats this as a Gift with Reservation of Benefit (GROB).

That means:

• The house is still counted as part of your estate for IHT purposes.
• The seven-year rule does not apply.
• The gift is effectively ignored when calculating inheritance tax.

Even if the title deeds are changed, the benefit you retain (living in the house) invalidates the tax saving.

Paying Rent Isn’t Always the Answer

Some believe they can avoid GROB rules by paying rent to their children. Technically this is true if:

• You pay full market rent until you die.
• Payments are regular and provable.
• The rent is declared as income by the children (creating income tax liability).
• Children take on full responsibility and liability as a landlord.

In practice, this route is rarely followed properly, not practical or affordable for many families and can create more tax issues than it solves.

The Capital Gains Tax (CGT) Trap

Not withstanding the obvious GROB issues, gifting the home can lead to additional capital gains tax for your children later.

Here’s why:

• The gift is treated as a disposal at market value.
• If your home was your main residence, you may not owe CGT when gifting.
• But when your children sell the property later (e.g., after your death), they will pay CGT on any increase in value from the date of the gift to the date of sale, unless they lived in the property themselves.

In short: they inherit an additional tax liability they wouldn’t have had if they inherited the house via your Will.

It Could Affect Their Stamp Duty Too

If your child already owns a home, or later purchases one, having your house in their name may:

• Class it as a second property.
• Trigger the 3% stamp duty surcharge on future property purchases.
• Disqualify them from first-time buyer relief.

We often see families caught out by this when it comes time for the children to move or invest.

You Lose Control

Once the property is legally in your children’s name:

• You no longer legally own your home.
• It could be at risk in their divorce, debt issues, or disputes.
• If the relationship breaks down, there may be no legal route to reclaim the house.

Even with the best of intentions, these are real risks that can and do happen. All families will swear that theirs would never fall out with them, that their children are in stable marriages and divorce is not a concern or would not face financial difficulty.

But, ask yourself this: Would you bet your house on it?

Care Fee and Deprivation of Assets

Local authorities can look back at property transfers and, if they believe you gave the house away to reduce care costs, they may:

• Treat you as still owning it.
• Include it in your financial assessment.
• Still expect you to self-fund care.

This is known as deprivation of assets and is a common pitfall for people trying to plan without full advice.

What to Do Instead

In our professional experience, gifting the family home almost never works as an effective inheritance tax strategy for typical estates.

That said, for very high-value estates, there are carefully planned ways to gift part-shares of the property without triggering GROB, using the legal carve-out under Section 102 of the Finance Act 1986.

Under these rules, it is possible to gift portions of your property to your children.

But these are specialist scenarios and must be handled with expert legal and tax advice.

Better, Safer Alternatives

There are many legitimate and proven ways to reduce inheritance tax, including:

• Using Wills and Trusts strategically.
• Creating life interest or protective property trusts.
• Making use of allowances and the residence nil-rate band.
• Putting life insurance in trust to cover liabilities.

These are strategies we help our clients with every day using our Give & Guard strategy.

If you would like more information about why you should never sign your house over to your children, or what you can do instead, please speak to a member of the team.

At Moneybox Wills & Trusts, we help families across Macclesfield and Cheshire understand their options and make smart, safe decisions about the future of their home.

Book your free consultation today and get clear, accurate advice that will help you and your family, not cost them more in the long run.

Call Moneybox Wills and Trusts on 01625 573521 today.

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Many people believe that if they live with their partner for long enough, the law will treat them like a married couple. This is often referred to as being “common law husband and wife”.

In England and Wales, this is not the case and when it comes to Wills and inheritance, it can have very serious consequences.

The simple truth is: there is no such thing as a ‘common law partner’ in UK inheritance law. If you are not married or in a civil partnership, the law does not automatically protect your partner when you die.

Living Together Does Not Create Inheritance Rights

No matter how long you’ve lived together, who paid the mortgage, whether you raised children or built a life together, an unmarried partner has no automatic right to inherit anything if you die without a will.

This includes situations where:

• Your partner contributed to the mortgage

• Your partner paid household bills for years

• You verbally told them “the house will be yours”

• Friends and family all believed your wishes were clear

Without a valid Will, none of this matters legally.

Under the intestacy rules in England and Wales, only spouses, civil partners and certain blood relatives can inherit automatically. An unmarried partner is not included.

“But We Live in the Same House…”

This is where many people are most shocked.

If only one partner owns the home, which is very common in:

• Newer relationships

• Second relationships

• Blended families

• Situations where one person bought the property before the relationship

…the surviving partner has no automatic right to inherit the property or even remain living there.

When the homeowner dies without a will:

• The property forms part of their estate

• It may pass to children, parents or siblings

• The surviving partner can be left with no legal entitlement at all

Even if the surviving partner has lived in the property for years and contributed financially, that alone does not guarantee inheritance.

Go to court, Just to Stay in Your Home?

In many cases, the only way an unmarried partner can seek protection is by making a claim under the Inheritance (Provision for Family and Dependants) Act 1975.

This is not an automatic right. It means:

• Making a formal legal claim against the estate

• Incurring legal costs

• Facing delays, uncertainty and emotional stress

• Potential disputes with family members

And even then, the outcome is not guaranteed. The court decides what (if anything) is “reasonable financial provision”.

For many people, this comes as a shock, especially when the intention was always to protect their partner.

The Simple Solution: Make a Will

All of this uncertainty can be avoided with a properly written will.

A will allows you to:

• Leave your estate to your partner, regardless of marital status

• Protect your partner’s right to remain in the home

• Make clear provision for children or step‑children

• Prevent disputes and avoid unnecessary legal action

• Ensure your wishes are followed exactly

For unmarried couples, a Will isn’t just important, it’s essential. And will prevent a great deal of stress, uncertainty and expense.

Clear Advice for Couples in Macclesfield & Cheshire

At Moneybox Wills & Trusts, we regularly help unmarried couples who are unaware of how exposed they are without a will. Our role is to make the legal position clear so you can make informed decisions. Your Will does not need to be complicated or expensive. It just needs to be right.

If you have been putting this off, now is the right time to take the first step.

Call Moneybox Wills and Trusts on 01625 573521 today.

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Inheritance Tax Planning — Pass on more of your Estate Without Losing Control.

Inheritance Tax Planning  — Pass on more of your Estate Without Losing Control.

You’ve worked hard for what you have. The last thing you want is for a large chunk of your estate to be lost to unnecessary tax, legal costs, or poor planning.
That’s why many families across Cheshire area are turning to smart inheritance tax planning strategies to protect what they’ve built — and to pass on as much of it as possible to the people they care about.

At Moneybox, we call it: The Give & Guard Strategy

It’s designed to help you:

• Give away what you no longer need

• Guard what matters most

• Stay in control of your estate every step of the way

Why Inheritance Tax planning matters

If your estate is worth more than £1 million—including your home, savings, pensions, and investments—you could be facing a 40% inheritance tax (IHT) bill on anything above the threshold. That means tens of thousands of pounds could end up with HMRC instead of your family.

But IHT isn’t the only threat. A poorly structured Will, lack of clarity, or assets left outright to children can also expose your estate to:

• Probate delays and legal costs

• Family disputes or remarriage complications

• Inheritance being lost to divorce or debt

Step 1: Work Out What You Actually Need

Before you can make any plans, you need clarity:
What do you genuinely need to live comfortably — and what could you pass on or protect?

Most of our clients want to:

• Stay in their home (or retain the right to downsize)

• Keep enough savings for emergencies and future care

• Maintain steady income from pensions or investments

These are the assets to Guard.
What’s left over — surplus savings, second properties, future inheritances — may be available to Give.

If you have a Financial Advisor they will often help you with this. If you do not, Moneybox Wills and Trusts have a team of experienced Wealth planners who will do a complimentary financial forecast with you so that you can work this out.

This step is about gaining confidence. Knowing what you need gives you the freedom to plan the rest.

Step 2: Give Away What You Don’t Need – Guard What You Do

Once you’ve identified what’s essential, you can start taking practical steps to reduce your tax exposure and secure your family’s future.

Give: Passing on Wealth — Without Regret

There are several tax-efficient ways to pass on assets while you’re alive:

• Use your annual gifting allowance – You can gift £3,000 each year without any inheritance tax concerns.

• Make larger gifts with the 7-year rule – Gifts over the annual allowance may become IHT-free if you live for seven years after making them.

• Make regular gifts out of surplus income – you can give away any income surplus to your needs, with no limit. This is often the most overlooked strategy.

• Support your family now – Gifting towards house deposits, weddings, or education can make a real difference during your lifetime.

Proper inheritance tax planning reduces the size of your estate and any eventual tax bill — while allowing you to see the benefits in action.

Guard: Protect What You Intend to Keep

Some assets you want to hold onto — but that doesn’t mean they should be unprotected. That’s where trusts and structured planning come in.

For example:

• You might place your home into a trust, so that after one spouse dies, the other can remain living there — and the home is ultimately passed to your chosen beneficiaries.

• You may set up a trust for surplus savings or investments, so funds are available for your family without being handed over in one lump sum.

• You can create Wills that include protective trust clauses, shielding your legacy from unexpected events like divorce, remarriage, or bankruptcy in the next generation.

A Word on Care Fees

We’re often asked whether a trust can “protect the home from care costs.” Here’s the truth:

If a trust is set up with the sole aim of avoiding care fees, it may be challenged by the local authority.

However, many families choose to use trusts for broader reasons — such as making sure the family home is passed on exactly as intended, or to reduce the risk of sideways disinheritance (e.g. if a surviving spouse remarries).

At Moneybox, we don’t promote gimmicks or “loop-holes.” We focus on ethical, long-term strategies that balance control, protection, and peace of mind — all within the law.

Your Next Step: Plan While You Still Can

The earlier you plan, the more options you have. You’ve built your estate — now make sure it’s handled properly.

We help families across Macclesfield, Wilmslow, and the wider Cheshire area put proper plans in place that are tax-efficient, protective, and fully compliant.

Moneybox Wills and Trusts offer a free initial consultation where we can identify your IHT exposure, key concerns or wishes around the way your estate is passed on, and to outline a tailored plan to achieve this, based around the Give & Guard strategy.

Call Moneybox Wills and Trusts on 01625 573521 today.

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Business Property Relief inheritance tax rules can make or break a family business. If you’ve dedicated years to building a successful business, safeguarding your legacy from unnecessary taxation is paramount. Many business owners don’t realise that their company could be taxed at up to 40% the moment they die — even if they plan to leave it to their children or spouse.

In the UK, Business Property Relief (BPR) offers a significant opportunity to reduce or even eliminate Inheritance Tax (IHT) on qualifying business assets. But if your Will isn’t structured correctly, that relief — and the value you’ve built — could be lost.

With legislative changes on the horizon, it’s more important than ever to ensure your estate plan makes full use of the reliefs available. 

In this article, we’ll explain how UK business owners can pass on their business without a huge inheritance tax bill, using BPR trusts and strategic Will planning

What is Business Property Relief?

BPR is a tax relief that can reduce the value of business assets when calculating IHT. Subject to certain conditions, up to 100% relief from IHT is available on:

• A business or interest in a business (e.g., sole trader)
• Shares in an unlisted trading company
• Certain partnership interests

To qualify, the assets must generally have been owned for at least two years and still be held at the time of death

Business Property Relief 2026 Changes.

Significant reforms are scheduled that could drastically affect how BPR is applied:

• £1 Million Cap for 100% Relief: The full 100% relief will only apply to the first £1 million of combined qualifying business and agricultural property. Any value above this threshold will receive relief at a reduced rate of 50%, effectively resulting in a 20% IHT charge on the excess.
• Non-Transferability of the £1 Million Allowance: Unlike the nil-rate band, this £1 million BPR allowance is not transferable between spouses or civil partners. Therefore, strategic planning is essential to maximise the relief across both estates.

The Importance of Proper Will Structuring

A common misconception is that leaving BPR-qualifying assets directly to a spouse preserves the relief. While transfers between spouses are generally exempt from IHT, BPR is not preserved in such cases. Consequently, the opportunity to claim BPR may be permanently lost upon the second death. One of the most overlooked strategies for UK business owners planning to pass on their business without a heavy inheritance tax bill is proper trust structuring through their Will

If your Will simply leaves the business to your spouse, you could unintentionally trigger a large tax bill for your children later.

Solution.

Including a BPR Trust in your Will allows trustees to receive the business assets upon death, preserving the tax relief while still providing flexibility and support to your spouse or family. These trusts can be structured as Discretionary Trusts Wills or as part of a Flexible Life Interest Trust, depending on your specific objectives.

Take Paul, for example — a manufacturing business owner who originally planned to leave his shares outright to his wife. We helped him restructure his Will to include a BPR Trust. Not only did this preserve the tax relief, but it also ensured his children’s inheritance would remain protected in the long term.

Benefits of a BPR Trust.

• Preserves the 100% BPR relief without passing assets outright
• Allows trustees to sell or retain the business post-death
• Provides future flexibility (e.g., loan capital to spouse if needed)
• Offers asset protection from remarriage, creditors, or sideways disinheritance
• Coordinates with other reliefs and the overall estate plan

Common Pitfalls to Avoid

• Leaving shares or business interests outright to a spouse, thereby losing future BPR
• Having no Will, resulting in assets falling under intestacy rules and BPR not being applied strategically
• Using a basic Will that ignores trust planning and IHT risks
• Not reviewing the Will after business growth, restructuring, or new shareholdings

These oversights can lead to substantial, unnecessary tax liabilities for your family.

How We Can Assist

At Moneybox Wills and Trusts, we work with business owners who want to protect their companies, reduce tax liabilities, and provide for their loved ones. Our services include:

• Bespoke Wills with BPR Trusts where appropriate
• Inheritance Tax review and multi-generational planning
• Powers of Attorney and executor support

We help you make full use of Business Property Relief inheritance tax planning strategies through expert Will drafting and tailored trust structures

Next Steps for Business Owners

Your business represents one of your most significant achievements. Don’t let your loved ones lose part of it to tax. With the right Will, you can keep your company in the family — and keep more of what you’ve built.

If you’re wondering how to pass on your business without a huge inheritance tax bill, we can help you take the first step with clarity and confidence. 

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