Life Interest Trust Will

Hercules_Grytpype-Thynne

Thoughts please? My solicitor is quoting me £450, which although sounds expensive could it be looked upon as being a cheap (?) assurance that my two children will at least get a half share in half our house should my wife or I have to pay for residential care after one of us dies.


BUT not if both of us go in to residential care? Hmm, just thought of that...........

Yorkshireman99

It might not prevent the local authority getting their hands on it. Sounds like a waste of money to to me. Then there are the tax issues.

securityguy

If you seriously think that local authority will pay for your care at the time you need it, to the quality you want it, compared to paying for it yourself, then good luck to you.

Personally, I put the quality of my care ahead of my children's interests, and my wife and I have told our parents to make sure they look after themselves first and us a far distant second. But if your children are more avaricious, and happy to see you in substandard care to give them more money, then fair does.

There's also no evidence these trusts actually work.

troubleinparadise

If you own your house as tenants in common, then you can achieve this without some additional trust document.

Read up on this, then decide why your solicitor is trying to charge you for some more expensive method of achieving the same thing.

Your children could care for you, thereby avoiding the need for you to fund your care by selling your house...

Hercules_Grytpype-Thynne

Yorkshireman99 wrote: »

It might not prevent the local authority getting their hands on it. Sounds like a waste of money to to me. Then there are the tax issues.

Thank you, glad I asked first!

Hercules_Grytpype-Thynne

securityguy wrote: »

If you seriously think that local authority will pay for your care at the time you need it, to the quality you want it, compared to paying for it yourself, then good luck to you.

Personally, I put the quality of my care ahead of my children's interests, and my wife and I have told our parents to make sure they look after themselves first and us a far distant second. But if your children are more avaricious, and happy to see you in substandard care to give them more money, then fair does.

There's also no evidence these trusts actually work.

This is me trying to stop anyone taxing me (and let's face it, that's what it is) on money I have already paid tax on and my children would be horrified if they knew what I was planning in not taking care of me and my wife.


Your last line is eye opening, thank you.

Hercules_Grytpype-Thynne

troubleinparadise wrote: »

If you own your house as tenants in common, then you can achieve this without some additional trust document.

Read up on this, then decide why your solicitor is trying to charge you for some more expensive method of achieving the same thing.

Your children could care for you, thereby avoiding the need for you to fund your care by selling your house...

Will pursue this with some extra reading then, thank you and you are right with regards to children's responsibility.

getmore4less

Is this just a will giving life interest to a remaining spouse?

Fairly standard way to do it.

If it is a pre first death trust then that is a different scenario.

Keep_pedalling

Hercules_Grytpype-Thynne wrote: »

This is me trying to stop anyone taxing me (and let's face it, that's what it is) on money I have already paid tax on and my children would be horrified if they knew what I was planning in not taking care of me and my wife.


Your last line is eye opening, thank you.

For the vast majority of estates that will pay IHT it is not double taxation, as the vast majority of wealth held over your nil rate band has been obtained through untaxed, unearned wealth created through house price inflation and inherited money.

As property owners you will soon have a £1M nil rate band between you which should be more than enough to make sure that both of you are guaranteed a comfortable old age and even if you run up substantial care costs in your final years, there should still be a significant sum to leave to your children.

For most ordinary people trust are not much use in saving you tax, but if you do have assets over £1M then there are plenty of things you can do to reduce the tax burden on your estate, but you should take advice from a IFA not a solicitor.

Mojisola

Yorkshireman99 wrote: »

It might not prevent the local authority getting their hands on it.

If you are self-funding, the LA won't have interest in your finances.

You will get a bill from the care home and you will be expected to pay it.

getmore4less

No one knows what has been proposed so is speculating on multiple potential options without putting their own thoughts in proper context.