setting up a trust

seh567

Today I have been to see a STEPS solicitor. The advice I have been given is as follows:-

To dissolve the IHT Discretionary Trust by Deed of Appointment and set up a Life Interest Trust by Deed of Variation. With Conveyancing and LR fees costs would be £1850.00 plus vat.

I would own 50% value of the house and my sons would be trustees of the other 50%. The solicitor says that it is much easier to administer this type of trust and I would have more control of the interest. Any interest accrued in the trust would be for my use only as opposed to 3 trustees in the discretionary trust. However I would not be able to use any of the capital regarding 50% in trust to my sons.

I can keep the IHT Discretionary Trust but I wont have as much control and it is harder to administer, ie tax returns, iou, etc Also the costs to ensure everything is set up correctly are much the same as cost to change to a Life Interest Trust.

Still not sure what to do but this solicitor explained it much better and there was no hard sell.

I hope this helps anyone else in this situation