Placing property equity into trust for kids?

[idontknow]

is this possible and how easy is it to do?

The property is currently mortgaged with only a few thousand equity. What I want to do is protect any equity against unsecured debt should anything happen to me or my husband if that makes sense.

TIA

[des8]

Re: Placing property equity into trust for kids?

Hi and welcome
I think what you need is a Property Protection Trust
There is a bit about them here under "lifetime Trusts": http://www.which.co.uk/money/retirem...etime-trusts/;

[Openlaw15]

Re: Placing property equity into trust for kids?

I don't know if you could set up a trust transferring your equity from the property to your children. Your interest is the equity from a sale of your property. You could do this via a will. The problem with equity is that it does not have a saleable value until the point of sale, it could fail as the subject (ie assets, property, rights) must be clear. The trust must also be constituted, ie title for the assets transfers to a trustee. The problem is you do not hold title (legal interest), it called equity for a reason. The formalities for transferring an equitable interest must be done by deed: s.53, Law of the Property Act 1925. This would create a legal interest but as you only have an equitable interest I do not think a life trust could be set up.