Control but not own

novazombie

Thanks all, I am in the process of getting professional advice.

When I said the business was still in my name I just had a charge on it and the contract said I had control over it until it had been paid off. It wasnt paid off so I sold it.

Anyway I will write more tomorrow after my appiontment.

novazombie

Can someone point me in the direction of accurate information about trusts?

I am having trouble finding anything online.

I cant even find any books on the subject.

As far as I understand I can buy a house and put it in a trust for my baby son with me being the guarantor. I just want to find out about the tax obligations and how they compare with a LTD company.

Obviously some will say just get professional advice but I tried that and am not very impressed so far. So I am after a good book or website.

Surely the internet has got this information somewhere?

poppysarah

Do you mean like child trust funds? Most places don't offer the sort of specialised help you need.

Seriously go find professional advice
You need a tax and inheritance tax expert for this sort of financial planning.

mlz1413

I think you need to ask a good solicitor or tax accountant what age someone can own a house at, I would then guess that anyone can manage the house as currently no letting agent needs qualifications.
edit to add: note the house would have to be owned entirely to be in the name of someone under 18, ie no mortgage or loan secured on it.

BUT (if possible) that would mean your baby would need to make a will of how to leave their estate in the event of death, which would raise more complications. I think the trust you are implying is when someone dies and leaves their estate in trust to a next of kin when they reach a certain age - solicitors normally hold the trust and they charge every year for the service.

Look up your local solicitors and accountants (yellow pages?) and then look them up on the solicitors regulation authority, then choose a couple for an inital consulation to see if they can help you.

Only other option is to read all the books on law and tax - may take some years though!

also found this: http://forums.moneysavingexpert.com/showthread.html?p=8747835

princeofpounds

you might wish to consider offshore and trust ownership also.

Cyprus real estate companies (and maybe jersey?) can be traded without incurring capital gains I believe, so many real estate investment vehicles are based there.

I believe Guernsey has unusual trust laws where the donor to the trust can reclaim the assets under certain conditions (which makes a mockery of trust law but anyway!).

A professional should be able to help you out but I suspect you'll end up paying quite a lot anyway as things drag on.

novazombie

I think its 14 yrs old that is min ag to hold assets, is that right?

Now I am thinking about putting it in my fathers name he is just a pensioner. He has no property or income apart from contribution based state pension and will not be affected by an extra 300 week rent coming into his name.

I can pay an accountant to run it all for us and give him the figures at the end of the year but all in my dads name, I will keep a big charge on it all to avaios inheritance tax incase my father dies.

Are there any good accountants on here that give advice? What do you think of this plan?

Can I run a mobile phone contract and other expences in his name to get the tax down as much a possible?

Beardmidget

^^^
The above sounds like a terrible idea...

I suspect that this issue is WAY too complicated for you to ask anyone with a professional duty to advise correctly to do so on a forum.

You don't just need a solicitor... you need a whole firm!

So far I have seen you suggest the following specialist areas are involved:

Land and property
Tax
Trusts and equity
Company
Contract
Criminal (potentially...)

The big problem is that where law such as tax and trusts are concerned, you can't always just operate according to the letter of the law- you must also act according to the spirit of it. This is why tax lawyers make so much money- you will get it wrong if you try to do it yourself.

Emmzi

you know, he may be good at suing people, but if he broke the contract, he broke the contract. What on earth makes you think that'll stand up in court and he'll be able to get your cash???

I would start with asking a solicitor about that first, because you may be tying yourself in knots out of groundless fear.

the legal system is there to ensure justice. Call me old fashioned but if you have a half decent solicitor on your side and you have done nothing wrong, why are you frightened?

Thrugelmir

As you sold the business for one assumes a considerable sum of money. The other party, on the basis that would pursue legal action, attempt to recover at least the money they paid you towards purchasing the business. In court it would be difficult for you to explain where the money went, if its your defence that you have no assets.

I am not surprised that you've had trouble seeking professional advice.

As you sold both the business and received money for its hire. Maybe a cheaper option than incur sizable legal fees would be to negotiate a settlement with the other party.

novazombie

novazombie wrote: »

I think its 14 yrs old that is min ag to hold assets, is that right?

Now I am thinking about putting it in my fathers name he is just a pensioner. He has no property or income apart from contribution based state pension and will not be affected by an extra 300 week rent coming into his name.

I can pay an accountant to run it all for us and give him the figures at the end of the year but all in my dads name, I will keep a big charge on it all to avaios inheritance tax incase my father dies.

Are there any good accountants on here that give advice? What do you think of this plan?

Can I run a mobile phone contract and other expences in his name to get the tax down as much a possible?

My father is fine about it, its such a simple plan.

I will lend him my money (around 200K) on a private mortgage. He will then buy a house in N,London to rent out. I will have a charge for 200K on the property.

We will rent it out I will do all the work and manage the place deal with the tenants etc, also I will keep on top of the paper work.

We have a good accountant who my family has used for years. He understands the situation very well.

So I will keep all reciepts for maintanence insurance and expences.


My father will have about 300wk rent coming in on top of his state pension, I plan to have an expensive mobile phone contract and lease car and other things in his name that I will use. Probably about 100wk expences.

So we should only have to pay 20% tax on the 200 profit, is that right?

Any other things I havent seen yet why the plan wont work?