Property protection trust

rizzo_2

This is a will add on that protects half your property if jointly owned if one of you had to pay for a care home. How much should I expect to pay for this on top of a basic will?  Costs have come as a bit of a shock!

74jax

Why don't you own as 50 / 50 rather than this route? (tenants in common)? 

lisyloo

If there is a qualifying person living in the property then it will be disregarded.

are you sure you want to be cared for in a home on the local authority rate?
I have been to such homes and they were an unacceptable standard and a chance of being some distance from friends and relatives.

it’s a safety net and that’s all.
some of the places we went people had dressing hanging off, we’re cold for lack of a blanket (whilst staff chatted) and stank of pee.

be wary of thinking you won’t care. You might have all your marbles,

SeniorSam

It's not a Will add on. It is a Will where a married couple own their property as Tenants in Common (50-50) and on the first death, rather than pass all the assets to the souse, the first to die gifts their part of the house into a Trust for their children, with a Life interest for the spouse to allow the survivor to remain in the house until they died.

This type of Will was very popular before the extra 'Residential Allowance' was brought in to offset the IHT allowance not being increased.  Therefore a married couple would not only have allowances of £325.000 each against inheritance tax, but also  £175,000 each as residential allowance. So the total estate needs to be over £1,000,000 before tax.

Since the Residential allowance the need to shelter half of the property in Trust is not so essential although they are still produced, but cost more as there needs to be the construction of the Trust element and the powers that Trustees would need to administer the Trust in the best way. There are many examples of badly worded Trust Wills that cause all sorts of problems for your family and are best avoided and STEP qualified solicitors are best engaged for Trust matters

As for trying to avoid Care Costs, it has already been pointed out that the level of Care available from the Council if at a far lower level than can be provided privately. Any steps taken to avoid Care costs would be ignored as being the reason why someone would deprive themselves of assets just to avoid those costs.

getmore4less

A life interest using an IPDI trust should not cost a lot extra over  a standard will.

Pretty standard 

If just a property it is very easy for trustees.

Both  transferable nil rate bands get preserved as long as the  remaindermen of the trust are suitable qualifying beneficiary of the life tenant the RNRB can be used on second death.

Pretty common for couple/parents with kids.

Use is safe from deprivation of assets and the remaindermen can always give a bit back to support care if they wanted.

The RNRB have not changed the circumstances when and IPDI trust would be used but can make one less beneficial in cases where there are no suitable beneficiary on second death to use the RNRB.

Before transferable NRB  nil rate band trusts were more common to use up the NRB.

The tax changes 2006 changed the way life interest trusts got taxed.