Finding a reliable firm that specializes in setting up a simple property trust

JAX_156

I'm now trying to find a reliable firm that specializes in setting up a simple trust to put my house in to that's not too expensive. 
Can anyone recommend a firm?

Keep_pedalling

It is against MSE rules to make such recommendations, and if we are talking about your home it is almost certainly a terrible idea. Why do you feel you need to do this?

Marcon

JAX_156 said:

I'm now trying to find a reliable firm that specializes in setting up a simple trust to put my house in to that's not too expensive. 
Can anyone recommend a firm?

What are you trying to avoid by doing so?

xylophone

https://www.aprilking.co.uk/blog/steer-clear-of-asset-protection-trusts/
may be worth a read.

JAX_156

The biggest benefit is taking the excessive probate fee out of my estate, about £5k. A trust would also protect from bankruptcy, divorce and allow the kids to sort out the house themselves to suit there circumstances later. I could gift it now instead, but that would cause me even more problems, either way after 7 years the house won't be part of the probate or any other process.

Keep_pedalling

JAX_156 said:

The biggest benefit is taking the excessive probate fee out of my estate, about £5k. A trust would also protect from bankruptcy, divorce and allow the kids to sort out the house themselves to suit there circumstances later. I could gift it now instead, but that would cause me even more problems, either way after 7 years the house won't be part of the probate or any other process.

Probate fees are currently £215 and putting your home in trust or giving it away will not prevent your estate  requiring probate or take the house out of your estate after 7 years as it will be classed as a gift with reservation if you continue to live in it (unless you also pay full market rent for it).  There is also the issue of capital gains tax and you should also look up deliberate deprivation of assets, 

BootcamperHF

If you continue to live in the house then that will have implications that could impact on the effectiveness of the transfer.  You may also end up incurring costs either now or for your executors in sorting this out that would exceed the £5k saving you believe you will make.  Considered advice is to not try and plan with your main residence (if that is what it is).

JAX_156

Thanks for info on the probate fee. Last time I checked these were due for a big increase in April 20 but it has since been scrapped, so I was pleased about that.
https://www.moneysavingexpert.com/news/2019/10/government-scraps-planned-probate-fees-hike/
That said there's always the chance that large increases could be reintroduced in the future.
I knew that I would have to pay rent if I continued to live in the house if I just gifted it so that's why I specifically said that it would cause me even more problems.
However I didn't think that paying a rent was a requirement in the case of a discretionary trust so I will have to double check that..
CGT I believe would only apply if the house was later sold and only if it were not used as a main residence, but there is nothing I can do about that or any claims made on my estate.
My aim is to take advantage of my legitimate rights and make life as simple as possible for my kids.

Keep_pedalling

Putting the house in a discretionary trust is still giving it away, so will still be classed as a gift with reservation. As you will no longer be the owner any future sale will result in a potential capital gain based of the gain between the gift and value at the time of the sale. If sold after your death it could result in the double whammy  of a CGT bill on top of an IHT one. 

Doing this will not simplify things for your executors it will just complicate things, so defeats what you are trying to achieve. 

Savvy_Sue

Keep_pedalling said:

Doing this will not simplify things for your executors it will just complicate things, so defeats what you are trying to achieve. 

Worse, it may cause HUGE difficulties and complications in life, for you and for your children. 

JAX_156

Thanks again for all your views, although the reasoning for my wanting the trust is still a sound one that I believe suits our circumstances. The kids are also the executors of our will and the plan is that by the time we die there will be little left for them to deal with when they undertake the probate process.
 As trustees and beneficiaries of the trust they will have no admin regarding IHT after 7 years for the house and other assets given, even within this time the estate should be well within our £1m allowance so IHT should not be payable.
Our main wish is to keep the house in the family as part of our legacy and protect it from divorce claims. We would like one of the kids to live in the house, but they know that they can always rent it out for a good income. If they sell it it would be against our wishes so if they know they will have a huge CGT bill that would help to discourage them from selling the house and they'd keep it in the family as we want.
I'm sure that there are downsides to putting the house in trust but we are trying to weight this up against the upsides before deciding to go ahead with it.
If any one know anymore down or up sides please feel free to post a comment.