Propery trust when one partner is ill

dpolshaw

Hello. My wife and I, both 68, are looking at putting our property in trust for the benefit of our children. However, my wife has an incurable long term condition which, while not immediately life threatening, may need intensive medical care in future. It is not a condition that is likely to need care in a care home but will involve long term medical intervention. If we put the property in trust now, is it likely to be seen as deliberate deprevation of assets? If so, would I be better taking the option (I forget what it is called) to take out a trust for half the property? The property is in our joing names and we are mortgage free.

xylophone

If your wife has a condition requiring long term medical intervention. surely this will be covered by the NHS?

And if you are thinking of putting your home into Trust  for the purpose of obtaining or increasing means tested benefits see

https://www.gardencourtchambers.co.uk/news/social-welfare-updates/the-deprivation-of-capital-rule-in-welfare-benefits#:~:text=Under the 'deprivation of capital,Support Allowance and State Pension

Keep_pedalling

How do you think putting your home into a trust will protect your children’s inheritance?

if it was that simple everyone would be doing it. Yes it would be treated as deliberate deprivation of assets as there is no alternative reason you would do this. It certainly does not avoid IHT as it would be treated as a gift with reservation of benefits.

Do you both have wills in place?

Mojisola

Keep_pedalling said:

How do you think putting your home into a trust will protect your children’s inheritance?

if it was that simple everyone would be doing it. Yes it would be treated as deliberate deprivation of assets as there is no alternative reason you would do this. It certainly does not avoid IHT as it would be treated as a gift with reservation of benefits.

And it will cost a lot to get it done.

Keep_pedalling

Mojisola said:

Keep_pedalling said:

How do you think putting your home into a trust will protect your children’s inheritance?

if it was that simple everyone would be doing it. Yes it would be treated as deliberate deprivation of assets as there is no alternative reason you would do this. It certainly does not avoid IHT as it would be treated as a gift with reservation of benefits.

And it will cost a lot to get it done.

Unfortunately there are sharks out there who like to scare people about care costs then skin them for thousands in setting up useless trusts.