Flexible life interest trust - guidance needed

Chump_2

Hi folks. Please bear with me since this is only my second attempt at forum discussion (and my first attempt failed!), but I'm keen to get advice on protecting the family assets.

My parents are in their 70's and keen to pass on the house and any remaining savings to my brother and I (and we're keen on that as well!). We've started to read stuff (including postings on this site) and are slowly beginning to piece it together - but for us it's complex.

We recently read an article which suggested a strategy which appeared to tick all boxes but seemed a bit too good to be true.

If I understand it correctly it suggested that by placing the house and assets in a flexible life interest trust, my parents could retain a high degree of flexibility to perhaps sell the house, get hands on saved money if needed to top up care requirements, and then pass on the remainder.

If such a scheme does exist could anyone provide further details of how we might go about it and what are the pros and cons?

Also we were wondering who we spoke to to get sorted (solicitor, estate expert, IHT expert, probate person etc), and how much setting up a trust and/or pursuing a tenants in common division of the family home would cost. We live in Manchester.

Any help or direction would be appreciated.:o

xylophone

Under no circumstances enter into any kind of trust arrangement without expert advice- the tax treatment of trusts is complex and it is very easy to get into a tangle. Look for a STEP solicitor.http://www.step.org/publications/leaflets/why_make_a_trust.aspx
http://www.affinitywills.co.uk/library/files/Flexible%20Life%20Interest%20How%20It%20Works.pdf

To change to tenants in common a notice of severance has to be served on the other party and Form RX1 completed for the Land Registry - your parents' solicitor will advise. http://www.landregistry.gov.uk/public/guides/public-guide-18

jamesd

A solicitor is the way to go for this.