Helping parents with will. Need to revise Trust. Advice please

TcpnT

When my father died a few years ago his will had been simplified in the way described above. However the solicitor at the time the will was changed had not (for reasons he was unable to explain when asked later - just forgot I think) changed the title of the house back to joint tenants. This was not a big deal but it did mean that we had to apply for probate to transfer his share to my mother. Without this complication probate would not have been required as all other assets were in joint names and passed by survivorship.

On-the-coast

Thank you. Interesting & relevant. In the general explanatory notes there was another caution:
- Other investments will be changed to beneficial tenants in common
I do not think there were other investments... but i will ask. So many different ways of sharing ownership!

GDB2222

I strongly recommend getting powers of attorney done ASAP, whilst your parents are still in a good state to make them. As high priority as changing the wills.

On-the-coast

Agree, a few people have mentioned that in this thread. My parents did raise the subject with me a few months ago, so as part of will planning we will look at that.

crv1963

I would advise power of attorney to include health as well as finances- otherwise if dementia strikes or capacity is lost it can be a minefield dealing with care arrangements/ home assistance etc.

getmore4less

A very typical setup post transferable nil rate band is a life interest trust.

this ring fences the assets from asset grabs(care fees) but for most other purposes(CGT, IHT, transferable nil rate, etc) it is as if the spouse inherited.

Contrary to what many people think(and get told) even with TIC as long as one person survives you don't need a grant to do the transfers.

On-the-coast

What is TIC?
I had heard there were ways to ring fence against some of the impact of care home fees, but we do not want to unduly complicate things, none of us particularly want to be calling solicitors every time legislation changes.
The transferable IHT Nil rate bands, seemed a particularly fair & obvious change that seems unlikely (in my opinion) to be changed in the future - whereas care home fees (and ways to minimise them) are subject to much ongoing political angst.
Thanks for your help.

crv1963

Sorry if I have read it incorrectly but my point about health wasn't about reducing/ avoiding fees relating to health but about ensuring you and your sister have a say over care packages (which could include a care home at some point) without it then the appointed professional (probably but not exclusively a social worker) would have the final say over what and where care is arranged.


If you or your sister had POA then you could have a greater say in the matter. Of course there are living wills/ advanced statements and expression of wishes that can be made but these can be put aside.


Your parents could have POA for each other then if they can't complete the duties it could be stated that it passes to one or both of their children (you) a bit like I leave my house to my two children and if they supersede me their share passes to their children in equal shares.

getmore4less

On-the-coast wrote: »

What is TIC?
I had heard there were ways to ring fence against some of the impact of care home fees, but we do not want to unduly complicate things, none of us particularly want to be calling solicitors every time legislation changes.
The transferable IHT Nil rate bands, seemed a particularly fair & obvious change that seems unlikely (in my opinion) to be changed in the future - whereas care home fees (and ways to minimise them) are subject to much ongoing political angst.
Thanks for your help.

Tenant In Common, the other is joint tenants.

Last time the situation changed for life trusts(2006) the will based ones were protected to allow the asset(often 1/2 a house) to be protected but retain the transferable band and have the other tax benefits of residence relief and no CGT on death.


It is not just care fees that get protected other asset grabs like remarrying and everything ending up going to the new spouses kids.