do we need probate?

John_Pierpoint

But if it is made "discretionary" doesn't that mean nasty 45% income tax, 28% capital gains tax, regular Inheritance Tax (if over £325k) and most importantly possible loss of the principal private residence relief when the occupier of the family home needs to move?

Better to keep it as a simple "vanilla" interest in possession trust where the death of the surviving parent ends it ?

MotownFox

Most of the ones I deal with are the individuals, or a couple's private residence so in the majority of cases the £325k isn't breached. Of course if a married or civil partner couple is involved the allowance is twice that figure so greater value properties can also be taken on board with the same principals.

There is also no cgt as principal private residence relief applies which follows him/her them if a move is undertaken. There are potential problems if any of the property is rented out when income tax and potential cgt come into play though. However normally if it's just the house they live in then there is no income. If there is no income then no income tax. Returning elder children to the nest then who want to pay rent is not a good idea!