Creating a Trust for our house

Mojisola

cushty wrote: »

Thank you very much for the links. Care fees (that I hope we'll never need!) apart, I wonder if this would still be a good thing to make our children's inheritance easier to access.

It's really not that hard to sort out probate. Probably more straightforward than tying up a property in a trust.

xylophone

http://www.theguardian.com/money/2014/aug/28/tenancy-common-care-home-fee-solution

may be worth a read.

cushty

Thank you everybody for your responses, advice and links. You have all helped enormously and we now have all the information we need to tell the financial advisor - no thanks

pathtofreedom

Just to add you shouldn't believe what cold callers tell you. Be it double glazing, solar panels, ppi or "financial advisers". You wouldn't let a stranger who knocked on the door out of the blue build an extension, or sell you a strange car, it is the same for cold callers or emails.

When choosing anything that involves money do your own research. A cold caller might make you interested in a subject, but always do your own research, and get multiple quotes from suppliers you've chosen or are recommended by friends.

dunstonh

cushty wrote: »

It was from a cold call, just after I'd been refused retrospective funding for my Mum's care, so was open to this kind of proposition. But I'm beginning to wonder now.

Never act on cold calls. Most cold calls are scams or dodgy.

Thank you everybody for your responses, advice and links. You have all helped enormously and we now have all the information we need to tell the financial advisor - no thanks

Genuine Financial Advisers do not cold call. Chances are they are not actually financial advisers either as this type of work is generally carried out by people with little or no qualifications. Genuine advisers tend to refer clients to solicitors or professionals acting in this area rather than do it themselves.

LHW99

And tell the children to look up "immediate care needs annuity" when / if the time comes.
They can provide certainty over fees, and don't necessarily use up all the available cash resources.

jamesd

cushty wrote: »

It was from a cold call, just after I'd been refused retrospective funding for my Mum's care, so was open to this kind of proposition. But I'm beginning to wonder now.

Never do any business with any financial services firm that cold calls you. It's how scammers and fraudsters get many of their victims.

jamesd

cushty wrote: »

I would just like the money from our house, our only asset, to go to our kids, not on care fees.

There are typically better solutions than the one you've been considering. How about telling us more about all of your assets and potential income in retirement so we can give you some idea of just what is doable without that sort of thing?

cushty wrote: »

We had to sell my Mum's bungalow to pay for her fees - she had vascular dementia and needed 24/7 care. ... No regret on my part though as her care home was excellent and they looked after her emotional as well as her physical and medical needs

You know, your kids would probably have the same view if it came to that, though do remember that it's only likely to happen to around a quarter of people.

Mojisola

cushty wrote: »

just trying to do what's best for my kids.

One way to protect half of the value of the property is for you and your OH to own the house as 'tenants in common', usually 50% each.

Both of you need wills, leaving your half of the house to the children but giving the surviving partner the right to live in the house and also the right to sell up and move if wanted. You also need to specify who has the pay for maintenance, etc.

The children don't actually get their hands on any money until the second death or until the house is sold to pay for residential care.

atush

We had to sell my Mum's bungalow to pay for her fees - she had vascular dementia and needed 24/7 care. I looked after her for as long as I could, but eventually I couldn't cope. her fees and other bequests meant that my inheritance dwindled to £10K. No regret on my part though as her care home was excellent and they looked after her emotional as well as her physical and medical needs

So, if selling your mothers home, when you could not cope, for her to go into a good place you were happy with, was good enough for you- then why would not that be the same for your children?

I love my children, as i am sure do you. I would also hope they love me enough (as you did your mother) to pay for the care you/she required out of the assets you/they have built up.

What would you want to do? Be put into the cheapest home possible?

inheritance is a great thing for the younger generation. But living your life, and caring for yourself into old age, is what the money you earned is for. why would it be different for you than your parents?