Putting houses into trust - being able to draw a living

andyph76

HI,

After some advice for an elderly neighbour, I have told him to go see a IFA but be good to get some ideas from here..

He owns multiple homes which he rents out, he wants to put them into trust and get the rentals paid into the trust as well. he would then like to draw a living from the trust. is this possible? all houses are mortgage free.

Any advice / recommendations for companies be greatly received.

HappyHarry

andyph76 wrote: »

HI,

After some advice for an elderly neighbour, I have told him to go see a IFA but be good to get some ideas from here..

He owns multiple homes which he rents out, he wants to put them into trust and get the rentals paid into the trust as well. he would then like to draw a living from the trust. is this possible? all houses are mortgage free.

Any advice / recommendations for companies be greatly received.

This looks like a very tax-inefficient and expensive method of achieving nothing.

Sorry to be blunt, but what is it your neighbour is looking to achieve?

Keep_pedalling

Sounds like a great way to generate a large CGT liability.

kidmugsy

The notion that Trusts are a marvellous tax avoiding device is probably encouraged by the Guardian and the Daily Mail, but much of the idea is fiction.

I can't for the life of me see what it would achieve for him.

Tom99

[FONT=Verdana, sans-serif]If your neighbour thinks a trust may benefit him then take advice from an expert. I am not sure whether that would be an IFA or maybe a expert in trusts and tax (STEP - Society of Trust and Estate Practitioners).[/FONT]
[FONT=Verdana, sans-serif]Who are the beneficiaries of this trust to be?[/FONT]

xylophone

It seems that the OP's friend intends to gift the properties into a settlor
interested trust.

http://www.tolleytaxtutor.co.uk/taxtutor/files/subscriber/personal-tax/uk-trusts-and-estates/lectures/1d19.pdf