Putting a house in trust

Sedge11

Hello

Is it possible to explain something about leaving your home to your children by setting up a trust?

We had our Will people call this week and said that we could

My wife own the property as tenants in common to protect 50% of the property if one of us had to go into a home.

The company WDS said if we set up a trust for our 2 children and ourselves then after 7 years there wouldn’t be any inheritance tax to pay when we both died?

Is this correct?

And guidance appreciated as I don’t know what kind of trust it would be and if he is correct?

Lastly what should this cost - wewere quored £3600 - which I think is expensive

 Thanks

Grumpelstiltskin

Why are you using a ' Will Company ' instead of a solicitor?

FreeBear

The only people going to benefit from this is the will writing company.

If you both end up needing care, the local authority could look at how the trust was set up, and if they suspect deprivation of assets, go to court to get the trust dissolved. Alternatively, the rules could change making a trust worthless.

In the meantime, it could make things difficult should you decide to move..

p00hsticks

How much is your total estate worth and how old are you and your wife ?

Sarahspangles

It sounds like this will company sell cheap wills as a loss leader for expensive and unnecessary trusts.

Keep_pedalling

As a couple you can leave your children up to £1M IHT free do your assets exceed that? putting your house in trust but continuing to live it it does not take it out of IHT after 7 years.

The salesman who visited you knows this but he is a salesman looking for some fat fees for setting up a useless trust.  Please do not do this.

FreeBear

Sarahspangles said:

It sounds like this will company sell cheap wills as a loss leader for expensive and unnecessary trusts.

Other revenue streams for this sort of company -

Annual storage fees for the will (a solicitor will normally do it for free).

Appoint themselves as executors and cream off substantial fees for administering the estate.

Sedge11

Are there forms that I can obtain to do this? - is there any guidance you can point me towards please?

The_Unready

Forms to do what?

theoretica

If you have a stately home - you need good professional advice.  If you have an ordinary house this is probably a very bad idea.  If one of you needs to go into a care home do you want a decent one chosen by the family or to be moved into the very cheapest the council can find?  This would also, as you say only protect 50% of the property - how likely is it that care fees would be more than half your property's worth? 

Sarahspangles

Sedge11 said:

Are there forms that I can obtain to do this? - is there any guidance you can point me towards please?

The guidance is don’t do it!

If your estate is going to be worth more than £1 million you can afford to see a real solicitor, they won’t try to frighten you into spending money on unnecessary trusts.

If one or both if you need to go into a home your children will be happy to pay for a home where you are comfortable and happy that is near enough for regular visits.