trust fund

golfing12

we are to have a review of my wife and my self's wills by the company that originally set them up some 5 years ago, we are both 70 and in good health, this company has asked if we have considered setting up a family trust fund for our house which is worth around £200000, the family members would be my wife myself and our 2 adult children, they have quoted £2500 for this service, I thought this is high but have no idea really on how much these things cost, the company is long established and from what I can see reputable, I would appreciate your comments regarding costs

BrassicWoman

I think it depends why you want to do it.

There won't be any IHT to avoid at 200K and if it's a loophole to avoid care home fees, most of those are iffy at best. So I'd say overpriced for something which gives no benefit, unless you have another reason?

golfing12

BrassicWoman said:

I think it depends why you want to do it.

There won't be any IHT to avoid at 200K and if it's a loophole to avoid care home fees, most of those are iffy at best. So I'd say overpriced for something which gives no benefit, unless you have another reason?

we have yet to have a meeting to discuss fully why they are recommending a family trust we have only spoke on the phone to the company at the moment, what we do know is our other investments and cash holdings do take us above IHT should we both die, also probate fees were mentioned and a trust is a way of negating them apparently

Keep_pedalling

Absolutely do not do this. All it will achieve is for the company to make a nice fat fee. It won’t help with IHT and it won’t avoid care costs, and quite frankly their is no other reason for setting up a family trust.

I assume this is a will writing company rather than a local solicitor suggesting this.

BrassicWoman

I would see your family solicitor instead. Specialist sales companies make me nervous! You might be as well gifting assets while you are alive. Or spending the excess on a cracking holiday!

golfing12

thanks folks,

I'm still at the research stage with this and no date set yet for a meeting,

one thing I do know is that they would be making a fat fee which is reason in itself for them to chase me.

We do need to tweak our will slightly as we have had a rethink on what we had them include in our will 5 years ago,

as an aside my job prior to retirement was with a large NHS Trust the Trust put us on a one day retirement seminar this company were one of the ones brought in to advise.

 I do have a financial advisor who I have had for the last 10 years, in that time his advice has proved to be bang on, he did tell me a couple of years back he does not advise or sell will writing or family trust plans, but I'm thinking I may run it by him for his opinion also.

HampshireH

Did you contact them or did they contact you?

The difference being If they contacted you it's to make money out of you. And £2500 isn't a bad result from a marketing call.

If you called them, now you have your quote you can get a second or third.

I would speak to your financial advisor as you have one and he seems to offer sound advice which you trust