LISA and House In Trust

Sax

Before my wife died from cancer we setup a trust leaving her half of the house to my two sons, to protect my sons inheritance in the event of me remarrying.

Thus the house is owned 50% by myself and 50% by the trust; a life-long friend of my wife and myself are trustees of the trust, and when I die my sons will inherit the trust.

This is a question regarding the LISA bonus and the above situation.

I know if somebody inherits a house they do not receive the LISA bonus as they are not classes as first time buyers.

Am I right in thinking that my sons currently qualify for the LISA bonus, but if I died they would not be eligible for the bonus ?

Thanks in advance for any responses.

dale_cotterill

This is on the FAQ for the H2B ISA. I believe the first time buyer definitions are the same for LISA.

Would suggest your current understanding is correct.


https://www.helptobuy.gov.uk/help-to-buy-isa/faq/

I have property in a trust, do I still qualify as a first time buyer?

If you have or had an ongoing beneficial interest in a residential property via a trust, (including a trust created by a will or divorce), then you are not a first time buyer.


However, you are still a first time buyer if:
(a) you are named as a beneficiary of residential property in the will of a person who is still living; or,


(b) if the trust to which you are or were a beneficiary was only created for the purpose of selling the property and other assets following a death or divorce, and the title of the residential property was never transferred to your name or to a trust which you are an ongoing beneficiary; or


(c) if you are only acting in a trustee role and will not be entitled as a beneficiary in the future, (and do not have any other interests in residential property).

Alexland

The LISA website points to the HTB ISA website for detailed information on who would count as a FTBer so I assume the same criteria applies.

https://lifetimeisa.campaign.gov.uk/#withdrawing_for_your_first_home

Alex

Wildsound

As the others have pointed out, they are not first time buyers as they have a beneficial interest in the trust. A bit harsh I know as you have a life interest in it.

kidmugsy

If it were a Discretionary Trust I'd guess that it wouldn't count - it logically shouldn't, anyway. If they are the remaindermen of a Life Interest Trust, then logically it ought to count.