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Both can be smart financial planning tools — but together? Not always. Here’s what you need to know before one unravels the other.
When it comes to protecting your assets and planning for later life, there are two standout tools that come up time and again: Lifetime Mortgages and Protected Property Trusts (PPTs).
Both offer major advantages:
- A Lifetime Mortgage gives you tax-free access to the equity in your home, without having to move.
- A PPT helps safeguard your share of the property for loved ones after you die — especially against risks like remarriage, care fees or sideways inheritance.
They’re both clever strategies. But here’s the twist: they don’t always play nicely together.
Let’s Break It Down
✅ What is a Protected Property Trust (PPT)?
It’s a legal arrangement written into your will, it’s a testamentary trust, see our blog on this here.
When one partner dies, their share of the property is placed into trust rather than going directly to the survivor. This can:
- Protect inheritance for children (especially from previous relationships),
- Reduce what’s assessed for care costs,
- And stop your share of the home going to someone unexpected if your partner remarries.
You can read our blog on what a PPT is here.
✅ What is a Lifetime Mortgage?
This is a type of equity release that lets homeowners aged 55+ unlock cash from their property — often to fund retirement, clear debts, or gift early inheritance. You retain ownership, and the loan is typically repaid from the sale of the property when you pass away or move into care.
You can read our Blog on this here
So far, so good — both sound like sensible solutions. And they can be… as long as you understand the clash.
Where the Conflict Lies
Here’s the crux of it:
A PPT is trying to preserve the value of the home.
A Lifetime Mortgage is trying to spend it.
They work towards different goals.
Let’s say you put a PPT in your will to protect your half of the property. Years later, you take out a Lifetime Mortgage. The loan and compound interest gradually eat into the equity — which could leave less to protect by the time the trust kicks in.
And here’s the kicker:
A Lifetime Mortgage isn’t split down the middle. It’s secured against the entire property — regardless of how ownership is arranged or what the will says. That means:
- When one of you dies, although the Lifetime Mortgage usually does not need to be paid back (the loan is normally repaid on second death) the trust can not be set up as there is a loan secured against the property. Essentially the loan would need to be redeemed for the trust to be set up.
So, the trust might be legally intact, but financially empty.
So, Which One Should You Choose?
This isn’t a “one is good, one is bad” situation. It’s about what matters more to you:
🔹 Is your top priority accessing funds now — to boost your lifestyle, support family, or manage care needs while you’re alive?
Or…
🔹 Is it more important to protect your share of the property for children or other beneficiaries after you’ve gone?
You can’t always do both to the same extent. Something has to give.
Can They Co-Exist?
Yes — with caveats.
If you’re already using one strategy and considering the other, you need joined-up advice (luckily you know someone… hello). You need to decide on your priorities, be aware of the implications of each and possibly consider things like lending criteria and life insurance products.
The key is getting legal and financial advice that talks to each other, not just works in silos.
Our Advice? Plan With Eyes Wide Open
Don’t fall into the trap of thinking more planning = better outcomes. If your plans aren’t aligned, they can cancel each other out.
✔ Review your will and LPA’s before taking out equity.
✔ Review your mortgage options before finalising a trust.
✔ And make sure your estate planning and financial strategies are pulling in the same direction.
Need Help Weighing It Up?
At GP Norgate, we specialise in bridging the gap between estate planning and financial strategy. We’ll help you explore the pros, cons, and implications of Lifetime Mortgages and Protected Property Trusts — so you can make a confident, informed choice based on what truly matters to you.
Book a no-obligation consultation and let’s map out a plan that actually works — not one that unravels itself. You can book a consultation here.
***Information correct as of May 2025 and may be subject to change***
Will Writing is not regulated by the FCA
There may be a fee payable for Lifetime mortgage advice.
Lifetime Mortgages are applicable to over 55s only, may affect means tested benefits and can affect the inheritance you may leave.
Equity release includes Lifetime Mortgages and Home Reversion Schemes. Easy Street Financial Services Limited can advise and arrange Lifetime Mortgages and will refer to an approved specialist for Home Reversion schemes.To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.
GP Norgate Financial Solutions is a trading name of Easy Street Financial Services Limited which is authorised and regulated by the Financial Conduct Authority. Easy Street Financial Services Limited is a company registered in England and Wales with company number 6430453.
The registered office address is Basepoint, 377-399 London Road, Camberley, Surrey, GU15 3HL. There may be a fee for mortgage advice. The precise amount will depend upon your circumstances.