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

elsien

JAX_156 said:

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.

You will be dead. It won't matter to you any more. Why dictate to your children what should happen after you are gone - after all, any impact will be on them not on you if they turn out to be reluctant landlords. I don't see the point in trying to dictate from beyond the grave. 

Voyager2002

It is unlikely that creating a trust would achieve what you want to happen, and in any case this is very far from "simple".

I do have experience with a genuinely simple trust to hold a property and would be pleased to pass on details of the solicitor I used. I am confident that the this solicitor would also advise against what you plan.

JGB1955

I'm not sure that the beneficiaries will be thanking their late parents.....  A poisoned chalice indeed.

Mojisola

JAX_156 said:

Our main wish is to keep the house in the family as part of our legacy

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've never understood people who want to control their descendents from beyond the grave.

BootcamperHF

I would not be thanking you for making it both difficult and costly to sell a property that your children may not wish to either live in or let out.  Why on earth do you want to try and restrict their options just because you do not want it to ever be sold?  In my opinion that is very selfish planning on your part.  Have you even discussed this with your children?

Keep_pedalling

JAX_156 said:

 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.

I said this before but you obviously ignored it, so I will repeat it again, the 7 year rule does not apply to gifts with reservation, so the house will never fall out of your estate if you continue to live there after putting it in trust. 

elsien

You also still need to consider the deprivation of assets issue with regards to care costs.
This can still apply depending on your age, health and the reasons for putting the house in trust at the time.   Plus from a personal perspective, I would much prefer my parents to be able to pay for the care they need (if they need it) than be put somewhere at the lower price bracket and have a poorer quality of life. Luckily parent is in agreement and neither of us anticipate me getting much in the way of an inheritance, which is fine by me. 

xylophone

https://helpandadvice.co.uk/family-protection-trusts/

There is a list of pros and cons in the above - it also points up immediate tax considerations and tax considerations that may arise later as also the expenses that may arise in connection with administration of the Trust.

See also https://www.which.co.uk/money/wills-and-probate/passing-on-your-money/will-trusts-and-lifetime-trusts-aqmf66w4nu5w
under
Lifetime trusts and tax

See also
https://www.barkerevanslaw.co.uk/2013/02/whats-wrong-with-asset-protection-trusts/

Where to look for advice about Asset Protection Trusts

Look for professionals who are independently regulated and have an enforceable code of conduct, not just a voluntary one. Members of organisations such as Solicitors For The Elderly, the Society of Trust and Estate Practitioners and the Society of Later Life Advisers are trained and experienced in the provision of advice in this complex area of later life planning.

JAX_156

Thanks again for taking the trouble to post your views.
There is no need for us to worry about keep_pedalling’s assertion that  the 7 year rule does not apply to gifts with reservation because as we will still should be below the current £1m IHT limit.  I've read  also that if the beneficiary of the trust still lives at the property it would not count as a gift with reservation and we would not need to pay rent for the 7 year rule to apply. .
The kids would want to keep the house so a D/trust is still under our consideration, but nothing will be done without their approval. Don't know why some of you thought otherwise.
The other thing which we are considering is to just add add one or both of the kids names on to the deeds with us as tenants in common after 7 years it would greatly reduce the value of our estate as well as protect it from other claims.
This would be a lot cheaper and much more simpler for us than putting into the house into a trust. 
Another downside to all options is that our one son will probaly lose £3k available from his right to buy isa whatever we decide.
Why can't the government make life more simple? The jury is still out !

Keep_pedalling

JAX_156 said:

Thanks again for taking the trouble to post your views.
There is no need for us to worry about keep_pedalling’s assertion that  the 7 year rule does not apply to gifts with reservation because as we will still should be below the current £1m IHT limit.  I've read  also that if the beneficiary of the trust still lives at the property it would not count as a gift with reservation and we would not need to pay rent for the 7 year rule to apply. .
The kids would want to keep the house so a D/trust is still under our consideration, but nothing will be done without their approval. Don't know why some of you thought otherwise.
The other thing which we are considering is to just add add one or both of the kids names on to the deeds with us as tenants in common after 7 years it would greatly reduce the value of our estate as well as protect it from other claims.
This would be a lot cheaper and much more simpler for us than putting into the house into a trust. 
Another downside to all options is that our one son will probaly lose £3k available from his right to buy isa whatever we decide.
Why can't the government make life more simple? The jury is still out !

You son will not only lose the £3k, your frankly bonkers scheme, will also lose him the first time buyer tax relief on stamp duty.