Putting house into trust

diego_94

Trusts are a minefield, and if not done correctly are a headache. Solicitors charge a fortune for setting them up and running them.

I don’t think you can put a house in trust when people are alive as that may be seen as a deprivation of assets by local authorities, when the asset could be used for care home fees. And rightly so, why should taxpayers pick up these bills so people can hide their assets.

What may have happened is that your friend has severed the joint tenancy of the property and changed it to tenants in common with a 50/50 split. That way when one person dies, their 50% instead of going to the spouse automatically will go into the trust. That way this 50% would be protected from care home assessments for the surviving person as it would be in a trust.

Your friend may not of given you full details. I’m not an expert and will happily be corrected on the above about a trust when people are living.

Brie

elsien said:

And from the strictly non-legal point of view;

2. The marital property wouldn’t be included in the financial calculations anyway while the spouse or another family member over 60 was living there.

I get that the property isn't included in calculations for a spouse but for other family members it can be.  At least that's what our council told us.  Their initial comment was that the house would need to be sold and we would be made homeless but when they were aware that I was over 60 they said they would simply put a lien on the house.  

And permission granted to soapbox anytime you like....

london21

Quite interesting responses.

Knowledge is truly power.

I am in my 30s and someone I was talking to recently more like a life insurance salesperson kept going on about trusts. Good to know and understand stuff before taking a decision to make informed decision.

Keep_pedalling

london21 said:

Quite interesting responses.

Knowledge is truly power.

I am in my 30s and someone I was talking to recently more like a life insurance salesperson kept going on about trusts. Good to know and understand stuff before taking a decision to make informed decision.

Life insurance is often written in trust to avoid the payout becoming part of the insured person’s estate and therefore avoid it becoming subject to IHT.

london21

I will likely look into it in the future. 

currently early 30s at present with no dependants seems overwhelming and complex. 

6022tivo

Amazing at the hate towards it to be honest. 

I'm sure Rishi won't be paying inheritance tax on his estate when he dies, or even the Queen or King? 

Until we have a right to die, or the ability of refusing treatment etc, I'll be protecting my estate from the terrible care and social service system we have in the UK. Alternatively I'll be doing a Robin Williams.

badger09

@6022tivo
Why resurrect a thread which is well over 2 years old🤔 

smipsy

Because he was too busy looking into ways to scam the taxpayer to look at the date of the thread...

LHW99

or the ability of refusing treatment etc

AFAIK if you are mentally competant you have that right.

Governments do change the rules on Trusts which IMO are not easy to get your head round, in the first place. https://theconversation.com/family-trusts-often-cause-more-harm-than-good-81551