wills and trust fund

My husband died 3 years ago and left his half of the family house in trust to our 4 children. I am looking to update my will and have been advised that I should have my half of the house in a trust so that when I die my children will not have to go through probate and also my half would not be able to be used to pay potential care home fees as it would technically already belong to my children. I've never heard of or come across anyone who has done this so would appreciate advice as to whether this is something I should be doing

Comments

  • Keep_pedalling
    Keep_pedalling Posts: 20,158 Forumite
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    You have been badly advised, in all likelihood your husband left you a life interest in his half of the home so you children don’t own it until your death. This protects your security, your children’s inheritance from their fathers estate and avoided the issue of CGT when the house is eventually sold.

    Leaving your house in trust is pointless it does not protect your share from residential care costs and it does not avoid probate. Even if you put your house in trust now it would be considered deliberate deprivation of assets so again would not avoid residential care costs.

    Frankly anyone with sizeable assets would be mad to put any future care they may need in the hands of a cash strapped LA, you will have to wait until. You a pretty decrepit befor they would fund it and you risk adding up in over my dead body grange.

    If your will does need updating please speak to a local solicitor not some will writing company looking to charge you silly fees for setting up worthless trusts.
  • Thank you. My gut feeling was against it so you have confirmed what I thought. Really helpful advice thanks
  • Marcon
    Marcon Posts: 13,758 Forumite
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    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • Sarahspangles
    Sarahspangles Posts: 3,151 Forumite
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    I have recently heard a statistic that only 3% of people ever go into a care home, I would love to know if that's accurate.
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  • RAS
    RAS Posts: 34,935 Forumite
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    edited 11 March 2023 at 7:22PM
    We were told that very few of those who go into a home survive 3 years, by the matron of a very nice home which we worried about affording long-term because survival after diagnosis was estimated at 7 years. 

    The relative died 2.5 years later. Another relative has been in a home three years now, and is rapidly heading for their letter from the king, despite major health issues and Covid.

    So even if you need care, if you've got a decent property, there will be something left for your beneficiaries.
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  • Just_caring
    Just_caring Posts: 120 Forumite
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    edited 11 March 2023 at 10:10PM
    I would speak to the solicitor who drew up your original wills or the one updating them as I’m in the same situation and now your husband has died a trust has been created by his will and needs to be registered it’s quite a new thing even if no IHT is involved, you can be fined if you don’t do it. 
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