Trust

Jonkyjhk

I would like some much needed advice; recently my mum offered to buy a house for me and my family. She has offered to buy the house outright but on the condition we put it in a trust. My husband and I have four children from (1, 5, 7 and 14) and she wants us to put the house in their names with us as the trustees until we die then the property passes to the kids. My mum has insisted that she doesn't want us to be able to sell the house or take money out of it which we wouldn't do anyway. We are unsure what a trust would mean for us.

She has said we can do whatever we want with the house like rent it out but we want to live in it as to live mortgage free is a chance we never thought we would have. Should we have any reservations about setting up this as a trust? Is there anything we should be worried about in the future if we do this? Thanks.

00ec25

creating a property trust to avoid IHT where the beneficiaries are (currently) minors in legal terms (<18 age), but their parents are the trustees, is not something you or your mother should be trying to DIY

go see a solicitor

have you tried google yet for answers to your basic factual questions?
read this FAQ...
https://www.lawdonut.co.uk/personal/inheritance-tax-and-family-trusts/trusts-for-children-and-other-family-members-faqs

Keep_pedalling

Sounds nuts, has she supplied any reasoning for such a complex set up?

rheme

Firstly, your mum should also see a solicitor at a law firm for advice.

Then you should see a solicitor (at a different law firm for advice and any possible tax implications).

Jonkyjhk

Yes I am meeting a solicitor next week to discuss. Is there anything we should be concerned about?

Jonkyjhk

We have come to the conclusion that she wants to protect the asset - house and secure a financial future for our children. We both work in care industry and are low paid so trying to save whilst renting is impossible and not sure what financially we would ever leave our children. This sounds like it is s normal thing then to do.

Keep_pedalling

Sounds like she is trying to protect the house going on care costs for you, but that should be a decision you make not her.

xylophone

it should be possible for your mother to buy a property, gift it into a Trust, grant you and your wife a life interest and making the ultimate beneficiaries the children.


However, she must take expert advice from a solicitor qualified in Trusts and Estates.

https://www.step.org/member-directory

https://www.gov.uk/guidance/trusts-and-inheritance-tax

Marvel1

What happens of you wish to move? She doesn't want you to sell it.

GreenSnake

Keep_pedalling wrote: »

Sounds like she is trying to protect the house going on care costs for you, but that should be a decision you make not her.

Surely more important to consider care home fees for the mother at this point?

Sea_Shell

Also, even if you did go ahead...how on earth do you think this will all play out , long term, with a house owned 4 ways by the (by then) adult children. Could cause no end of disputes and falling outs.