Putting property into 'Trust'

Alikay

troubleinparadise wrote: »

Should a care home become necessary, being at the mercy of the Local Authority's funding means having to go where they choose - that might not be quite as pleasant as that which could be afforded by a person with a property to sell to fund the fees....

..Which is exactly why I always stop my mum whenever she comes up with some daft idea about how to keep the value of her nice but modest home to pass on to us and her grandchildren. Heck, we're grandparents ourselves with our own home almost owned outright, our children are all able-bodied, smart and employed....the person who is most likely to NEED the money tied up in her home is mum herself!

margaretclare

Alikay wrote: »

..Which is exactly why I always stop my mum whenever she comes up with some daft idea about how to keep the value of her nice but modest home to pass on to us and her grandchildren. Heck, we're grandparents ourselves with our own home almost owned outright, our children are all able-bodied, smart and employed....the person who is most likely to NEED the money tied up in her home is mum herself!

I couldn't agree more.

scotchick

Hi, I know bits about Scottish law (but I am not a Lawyer) Imust note that scots law is different to English Law. Many people have trusts in place it is not illegal;it is protecting your assets for the future. After all most people who have assets have worked hard all their lives,why shouldn’t they protect them?? In my opinionmore people should look at using the legal system especially when it comes towills and their estates. My advice toyou would be to find a local solicitor who is specialised in family law, suchas wills and trust. Most solicitors willoffer a 30 minute free consolation, before going to you consultation write downall your questions that you would like answered and take notes through yourmeeting. This will make sure that you don’tforget anything. It would also be goodto note in Scotland there are many different types of trusts, but you need tofind the best one for your mum & dad estate.

Another option which has not been mentioned is ‘Transfer ofTitle’ into you and your brother’s name. However there is a down side to this too as your mum and dad might endup homeless if you or you brother end up bankrupt or divorced as your wife/swould be entitled to ½ or ¼ share. Yoursolicitor could draw up an agreement for your wife/s to sign stating that theyhold no rights over you patents property in the event of divorce. If transferred in to you and your brother’sname first point to consider is do you get on well and in the future there willnot be disputes over how things are dealt and second the time limit in whichyour parents will get help, if they ever need it.

Best advice is speak to a solicitor or if you have the timespeak to a couple on their free consolation.

I hope this is of help, it will cost £500 to £2000 butcheaper than the 20K plus a carehome would cost per year in the event they needit.

All the best to you and your parents

rogerblack

scotchick wrote: »

Hi, I know bits about Scottish law (but I am not a Lawyer) Imust note that scots law is different to English Law. Many people have trusts in place it is not illegal;it is protecting your assets for the future.

Trusts are not of themselves illegal.
However, this is not a simple area, and the interaction of trusts, benefits and the care system can be complex.
For example, in some cases, setting up a trust can prevent you later claiming any means tested benefits.

Advice from a solicitor skilled in benefit/care law for this sort of thing is almost mandatory.

margaretclare

After all most people who have assets have worked hard all their lives,why shouldn’t they protect them??

There is no reason why anyone should not protect their assets, but the nub of the question is - protect them for whom, against whom, and for what purpose?

I have worked hard all my life. So has DH. We've both worked hard from age 16 to 67, mostly doing responsible jobs albeit not necessarily well-paid ones. We've saved more since retirement than we were ever able to do before that.

Our plan is that our assets should be used for ourselves, for our standard of living, for our choice, our convenience. There is a saying 'saving for a rainy day'. Some people fail to recognise that the rainy day has arrived and want to give the umbrella to someone else rather than keep them dry in the rain-showers (if that makes sense as an analogy).

Our umbrella is for us. Not for anyone else.

If there is nothing left by the time we've both turned our toes up, so be it.