RNRB and property will trust

getmore4less

Marcon said:

mrschaucer said:

Marcon said:

IndiaMae said:

Hi, please could someone confirm if RNRB is available if my husband and I change to tenants in common and have property will trust so our son inherits 50% of property held in trust on first death and then 100% on second death. Property worth around £450k at the moment. Initial recommendation was living trust but as we would lose £350K (£175,000 each) RNRB potential to save £140k IHT savings I am having serious reservations on that one as over time surely property may go above £650k NRB so I would pay 40% tax on any savings etc. Hope this makes sense thanks 

Is this supposed to be a way to avoid care home fees? 

Why so judgemental?  The first deceased is perfectly entitled to leave his/her own share of the house to whomsoever (he) wants.  The cats' home perhaps.  No avoidance of fees.  The remaining spouse is able to use (her) own £225k share of the house to fund (her) own care if necessary.  No avoidance of fees. 

Nothing judgemental about it - I was asking a question. Switching from joint ownership to tenants in common is often put forward as a way to avoid care home fees but the snag is it doesn't work. Try reading this and you'll understand why I asked (and possibly be better informed in case you are ever faced with a similar decision): https://www.saga.co.uk/magazine/money/personal-finance/care/paul-lewis-the-care-home-fee-trap

Changing to TIC and using an IPDI trust is not even mentioned in that article.

mrschaucer

Marcon said:

mrschaucer said:

Marcon said:

IndiaMae said:

Hi, please could someone confirm if RNRB is available if my husband and I change to tenants in common and have property will trust so our son inherits 50% of property held in trust on first death and then 100% on second death. Property worth around £450k at the moment. Initial recommendation was living trust but as we would lose £350K (£175,000 each) RNRB potential to save £140k IHT savings I am having serious reservations on that one as over time surely property may go above £650k NRB so I would pay 40% tax on any savings etc. Hope this makes sense thanks 

Is this supposed to be a way to avoid care home fees? 

Why so judgemental?  The first deceased is perfectly entitled to leave his/her own share of the house to whomsoever (he) wants.  The cats' home perhaps.  No avoidance of fees.  The remaining spouse is able to use (her) own £225k share of the house to fund (her) own care if necessary.  No avoidance of fees. 

Nothing judgemental about it - I was asking a question. Switching from joint ownership to tenants in common is often put forward as a way to avoid care home fees but the snag is it doesn't work. Try reading this and you'll understand why I asked (and possibly be better informed in case you are ever faced with a similar decision): https://www.saga.co.uk/magazine/money/personal-finance/care/paul-lewis-the-care-home-fee-trap

I suggest it might be you who needs to reread the article.