We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Golden Charter Family Protection Trust

124»

Comments

  • statex
    statex Posts: 38 Forumite
    Does anyone know if there are tax disadvantages on trusts. Because the probate form ask if there were any trusts that the deceased benefitted from.
  • John_Pierpoint
    John_Pierpoint Posts: 8,396 Forumite
    Part of the Furniture 1,000 Posts
    edited 8 January 2013 at 4:45AM
    statex wrote: »
    Does anyone know if there are tax disadvantages on trusts. Because the probate form ask if there were any trusts that the deceased benefitted from.

    IHT is based on the concept that the state milks family wealth every time it is passed from generation to generation - roughly every 30+ years - by confiscating 40% of it.
    [The benefit of this action to society is a moot point]

    TRUSTS:
    Not quite mind bogglingly complex and of course subject to changes in legislation and appeal judgements in the courts.

    If you are seriously interested buy the "Which?" book "Giving & Inheriting" to learn the basics. Allow a weekend and wrap a cold towel round your head.

    http://www.amazon.co.uk/Giving-Inheriting-Which-Essential-Guides/dp/1844901181

    I have seen debates on legal forums about the economics of administering trusts ie after paying the trust taxes and the legal eagle/financial adviser for looking after it, do the losses still make it a worthwhile exercise ?

    There can be special (cheaper) tax arrangements for trusts to protect those unable to manage their own affairs.
  • My Step mum and Father has one of these "Family protection trusts", and also have a Golden charter funeral plan. Sadly my Step Mum passed away and the funeral plan has a short fall of £650.00.

    We have consulted our solicitor, and have been advised to cancel the Family protection plan, as it could cause us more problems than it is worth, and to leave it to the family to sort out. ie Myself, sister and brother.

    So far my parients have spent nearly £7,000 setting these plans up, out of their pensions !!!!!!:mad:
  • harryhound
    harryhound Posts: 2,662 Forumite
    The latest episode of "Moneybox" on Radio4 suggests that up to now putting the family home into trust is a gamble, as the majority don't have a problem anyway. It has tended to work for those who needed it but cash strapped local authorities are clamping down,
    http://www.bbc.co.uk/programmes/b026xd3k
  • dlewis1966 wrote: »
    Hi All
    As an ex local authority social worker in Adult Social Care, I would like to respond to a couple of points made/questions asked: The person who said that the 6 month rule was a myth, in relation to looking into an elderly person's financies was in fact correct, as the length of time the local authority will look back into your affairs if you say you don't have any assets is 7 years! Also, as taking out a Trust (hopefully) ensures that you rely on the local authority to pay your care costs, doesn't mean to say that you have to make do with a LA run care home. As the person whose mother is currently in a care home and who took out a trust, if you choose a privately run home (and let's face it most people do these days as there are hardly any LA ones left open!) then you have to pay a top up fee directly to the home, which is the difference between what the LA say is the going rate and what the home choose to charge.

    I do sympathise with the person who complained about his grandad's funeral costs he had to pay despite having had a Funeral Plan, however I must say that our experience was a little different. My father, who had a Golden Charter funeral plan, died on a weekend in hospital just before Christmas. However, the only balance left to pay which we were charged were for family flowers, which TBH I thought, fair enough, I wouldn't have expected my dad to pay for his own flowers and the organists fee, which I suppose is an optional extra. So overall it came to just over £100 which I thought wasn't bad. Admittedly, my father had previously purchased a burial plot though goodness knows how much he paid. We didn't pay to bury him but will have to pay for a headstone when the ground settles in about 6-12 months time. What really annoys me though is we will have to also pay about £300 to the cemetery to have the headstone placed.

    The reason I was looking at the post is my mum (who also has a Golden Charter Funeral Plan) has this week been approached to buy a Family Protection Trust from Golden Charter. We have sent the salesman away and are thinking about it as I wanted to check it out first, though mum thinks Golden Charter are a good idea I might consider using Beneficent Law who are a not for profit company.

    Sorry for rambling on but I thought it might be useful to share my relevant experiences.


    I've looked into Golden Charter as well. I was put off as they a funeral planners and was concerned about being miss sold a trust. I'm in talks with a couple more companies this week. I will post you an update. Me know how you get on


    :beer:
  • harryhound wrote: »
    The latest episode of "Moneybox" on Radio4 suggests that up to now putting the family home into trust is a gamble, as the majority don't have a problem anyway. It has tended to work for those who needed it but cash strapped local authorities are clamping down,


    Very interesting. Thanks.

    I'm speaking with the reputable provider found on the Age UK article "asset-protection trusts"

    :beer:
  • harryhound
    harryhound Posts: 2,662 Forumite
    Let us know the outcome please.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.2K Banking & Borrowing
  • 252.1K Reduce Debt & Boost Income
  • 452.4K Spending & Discounts
  • 240.8K Work, Benefits & Business
  • 617K Mortgages, Homes & Bills
  • 175.6K Life & Family
  • 254K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.