Property Trust Wills

Shankers

I'd appreciate some insight into 'property trust wills.'

Current situation: mid-30s, married, one child (and another on the way), we have a buy to let mortgage on a property as we're living in work accommodation, and my wife and I have no wills. With older relatives, we've heard a lot in recent years about homes being sold to provide for care.

What are peoples' views about the pros and cons of property trust wills? Would putting a property into trust affect things like landlord insurance and other contracts we may have pertaining to the property (i.e., would it affect premiums or simply involve the reissuing of documentation to reflect changes made)?

We're looking at Co-op Legal to arrange mirror property trust wills. Have people had any experience of them? What are they like to deal with? 

xylophone

https://www.aprilking.co.uk/making-a-will/steer-clear-of-asset-protection-trusts/
But in connection with the above, if the T-i-C route were followed, it would not work if both of you were living at the time you both had to go into care. Clearly, a will can only take effect on death.

In your particular case, the property is not even  your family home - at the moment it is an investment property.
As far as I can see, you would be gifting an asset into Trust - it is not your PPR and therefore there could be CGT consequences at the time of the transfer. There might also be IHT considerations.
https://www.thepfs.org/learning-index/articles/using-trusts-to-gift-property/46017
I would be very careful about this and take expert advice before any action.

Dox

There's a slightly more important consideration here: the guardianship of your children if you both die. If you don't specify who is to be their guardian and the worst happens (I sincerely hope that won't be for very many years), it is the local authority who will take decisions about what happens to them. Too many parents cosily assume that of the grandparents... Surely that's your priority, not worrying about property trusts, care home fees and the like.

Savvy_Sue

Shankers said:
With older relatives, we've heard a lot in recent years about homes being sold to provide for care.

Under what circumstances? I think you should do some reading up on these, because it's not the case that someone goes into care and their partner is evicted from the family home. 

And I would check, if you go with Co-op Legal Services, that you are seeing a solicitor who specialises in wills and probate, rather than a 'legal advisor' or 'will-writing specialist'. 

Shankers

Thanks to Xylophone, Dox and Savvy_Sue. Lots to think about here, and we'll be doing more reading and reflecting before we do anything. Yes, the guardianship of our children is of paramount importance.