Putting a House in Trust
Discussion
Pit it in here due to small number of posts in Finance.
My parents are mid to late 70's and in generally good health.
They are asset rich but capital poor.
There house is worth approx. £275k and they have always said they want to leave it to me and my sister.
However, they have not put anything in place to stop the LA taking it to pay for care if the surviving one has to go in a home.
I believe one way is to put the house in a joint trust in my sister and mine names. They would still live in the house but must pay a rent which has to be the market value.
I believe this has to be done at least 7 years before both their deaths. This might not be relevent as their estate is below the threshold for inheritance tax.
I know we need to seek expert advice but I was just wondering if anyone has done this or knows anyone.
Cheers
My parents are mid to late 70's and in generally good health.
They are asset rich but capital poor.
There house is worth approx. £275k and they have always said they want to leave it to me and my sister.
However, they have not put anything in place to stop the LA taking it to pay for care if the surviving one has to go in a home.
I believe one way is to put the house in a joint trust in my sister and mine names. They would still live in the house but must pay a rent which has to be the market value.
I believe this has to be done at least 7 years before both their deaths. This might not be relevent as their estate is below the threshold for inheritance tax.
I know we need to seek expert advice but I was just wondering if anyone has done this or knows anyone.
Cheers
Your on the right lines but its a tad more complicated than that. Ive just done a course so I can write wills and this was touched upon breifly.
You should see a trust lawyer/soliciter to get it done properly, they will normally charge up to about 2 grand to write the trust and whatever else they do but to potentially avoid the LA taking your parents home to pay for care I think its worth paying.
Again a trust lawyer will explain the process alot better than I can.
Hope that helped a bit.
You should see a trust lawyer/soliciter to get it done properly, they will normally charge up to about 2 grand to write the trust and whatever else they do but to potentially avoid the LA taking your parents home to pay for care I think its worth paying.
Again a trust lawyer will explain the process alot better than I can.
Hope that helped a bit.
Cheers Groober, I think its complicated even for the solicitors. The Govt seem to be closing the loopholes as fast as we are finding them.
Would a specialist tax accountant be helpful or would the solicitor who draws up the trust be able to advice on all the impliactions etc..
Paying a few grand is worth it if it saves giving the b
ds my parents house.
Would a specialist tax accountant be helpful or would the solicitor who draws up the trust be able to advice on all the impliactions etc..
Paying a few grand is worth it if it saves giving the b
ds my parents house.Yes they would be able to advise on all the aspects you require, and its not just a trust that is drawn up and then its job done it does involve slightly more than that.
As I said I only have a basic knowledge of this so dont take my advise as gospel.
Find a good trust lawyer and they will tell you exactly what you can and can't do
As I said I only have a basic knowledge of this so dont take my advise as gospel.
Find a good trust lawyer and they will tell you exactly what you can and can't do
Speak to a solicitor, get one for you and your sister and a different one to act on behalf of your parents. Don't worry to much about the 7 year bit, very rare they fight these things.
I have done this a while back with my folks. You guy's might call it trust, but we just put the house in my name (probably the same thing). I also have power of attorney which is good to have in place should it be unfortunatley required.
Best of luck.
I have done this a while back with my folks. You guy's might call it trust, but we just put the house in my name (probably the same thing). I also have power of attorney which is good to have in place should it be unfortunatley required.
Best of luck.
If its in trust it belongs to the trust that is the reason the LA cant get at it because it no longer belongs to your parents, they are simply trustees so they will still have control of their estate.
If you simply put it in your name and charge your parents rent the LA may be able to prove you did that purely to avoid care fees and can still get at the asset.
If you simply put it in your name and charge your parents rent the LA may be able to prove you did that purely to avoid care fees and can still get at the asset.
GreatGranny said:
Thanks SSC!, we did the power of attorney thing a few years ago.
I will arrange a family conference and try to move things on.
No worries. My solicitor is a good friend of mine so he got together with us and sorted it out, we had no need for another solicitor but it is recommended if you don't have one who knows you both.I will arrange a family conference and try to move things on.
Better you & your sis keep what your parents worked for than the GOV getting their mits on it.
If mine step out of line I tell them I am selling up and getting a couple Lambo's
that's a joke by the way... it's going to be Ferrari's
Groober said:
If its in trust it belongs to the trust that is the reason the LA cant get at it because it no longer belongs to your parents, they are simply trustees so they will still have control of their estate.
If you simply put it in your name and charge your parents rent the LA may be able to prove you did that purely to avoid care fees and can still get at the asset.
That is true, thankfully I don't need to worry about that. If you simply put it in your name and charge your parents rent the LA may be able to prove you did that purely to avoid care fees and can still get at the asset.
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