fossyant
Ride It Like You Stole It!
- Location
- South Manchester
Pray it doesn't go in care fees.
Putting House into a Trust
- Thread starter SpokeyDokey
- Start date
- Status
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Pray it doesn't go in care fees.
OP
OP
- Location
- Somewhere wet & hilly in NW England.
Not remotely religious and I'm not going to start worrying about stuff like that. Not a good reason to spend what we have imo.
Kevberlin
Well-Known Member
- Location
- Tenbury Wells
Our property is held as “Tenants in Common“, rather than “Joint Tenants”. This meets our needs.
In our case we used an Estate Planner after being less than impressed with a solicitor.
Kingfisher101
Veteran
It's better you spending it now, or giving bits of it away now than the state getting it eventually I would have thought? If there's 2 of you and you both end up very elderly there's a very good chance it will get swallowed up in care fees of one description of another.
fossyant
Ride It Like You Stole It!
- Location
- South Manchester
Just make sure you live for another 6-7 years if you plan to gift stuff. Half of MrsF's mum's estate went in care fees in 3 years (all way under IHT amounts).
dicko
Guru
- Location
- Derbyshire
We have two houses one is our main residence the other was bought with the money left us by my mother. My youngest son lives in the house bought with my mother’s money my eldest lives with us. Both homes are in trust to each son.
dicko
Guru
- Location
- Derbyshire
Speak to your solicitor he will sort it all out for you it’s easily done.
Bear in mind, however, that when setting up a discretionary trust, there is a 20% inheritance tax charge when the value of the money and assets placed in the trust exceeds the nil-rate IHT threshold. So say you are transferring assets worth £400,000 and your allowance is £325,000; IHT at 20% will be due on the £75,000 difference – a bill of £15,000.
https://www.thetimes.co.uk/money-me... put money and,are transferred into the trust.
https://www.thetimes.co.uk/money-me... put money and,are transferred into the trust.
wiggydiggy
Guru
Talk to a solicitor
@SpokeyDokey Anything I am abouty to say, is not as good as talking to a solicitor so please do that! That said...
I'm in the process of overseeing 50% share of a house being transferred into trust, this is following instruction set out in a will so it has to happen. I know you haven't decided yet to proceed but this is my experience so far.
I have registered the trust with HMRC, this was relatively simple if you have all the names and details of the trustees/beneficeries. I did take some independent (of the solicitor who wanted to charge £300 for this!) advice from an accredited accountant who confirmed I'd registered the right thing. BTW If I wasn't confident in doing this the accountants would have for the bargain charge of £40, compared to the solicitor that was something I was happy to pay if I wanted to.
Now that part is not actually transferring property ownership of the 50% into the trust, that needs to be completed by a conveyancing solicitor. Here we have run into issues which I don't want to get into detail about but is definately highlighting why it is best to talk not only to your solicitor, but an independent accountant and the land registry. Its actually a cause of some stress at the moment as 12 months on from the death, I fee I still can't start grieving 100% as things aren't 'settled'.
Now wether this course of action (50% into trust) is best is not for me to say, I'm acting as executor and ensuring the will is followed which as well being legally important it's morally important to me. Though once it's completed I may take further independent advice if it is best to leave as is or look to change.
Last thing - this seems to take months BTW so if you do decide to proceed be prepared for a slow steady progress!
DRM
Guru
- Location
- West Yorks
Get a solicitors advice and go for it, we have been dealing with this situation and basically it split the value of the inheritence value from first MiL then FiL, he was chuffed to bit's that the government got not one penny of his hard earned
Ming the Merciless
There is no mercy
- Location
- Inside my skull
Sell it to me for a £1 to avoid all the tax.
Once a Wheeler
…always a wheeler
Certainly not on the experience of having more than £5m in the bank. It is really a conclusion reached from reading articles in publications such as Investors' Chronicle, The Economist and the Money Saving Expert website. Whenever the subject is broached the articles seem to take the reader through a maze of procedures which end up making life complex and putting the noses of various agents and intermediaries into one's trough. I suppose the common-sense observation would be that if tax avoidance were easy everyone would do it. So apart from overt tax-free schemes such as Premium Bonds, governments will always make avoidance hard; and devious, highly paid professionals will be needed to find the loopholes. (By the way, the fund from which Premium Bond prizes are paid has been subjected to tax, so the tax-free payout is not really tax free, it is just that the tax is pre-paid by NS&I. It is a field where they really are out to get you!)
Ming the Merciless
There is no mercy
- Location
- Inside my skull
I think most of us would say net worth of £1 million or more puts you pretty close to the richest 1% in the country which starts at £3.6 million.
OP
OP
- Location
- Somewhere wet & hilly in NW England.
Thank you for all the pertinent replies.
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