Assets to put into a trust

caldi9

Good evening, other than life insurances what assets could be put into a trust?
Is there usually a trust for all assets or a trust per asset?
Can assets abroad put into a trust?

Thanks

Keep_pedalling

What sort of trust? What are you aiming to achieve with the proposed trust?

caldi9

Keep_pedalling said:

What sort of trust? What are you aiming to achieve with the proposed trust?

Life insurance as an example for optimised IHT.

Keep_pedalling

caldi9 said:

Keep_pedalling said:

What sort of trust? What are you aiming to achieve with the proposed trust?

Life insurance as an example for optimised IHT.

Putting existing assets in trust is very different to having an insurance policy written in trust. You can’t for instance simply put your home in trust to take it out of IHT if you carry on living in it.  That would be classed as a gift with benefit of interest so would not drop out of your estate after 7 years.

Putting things like holiday homes or BTL into trust is also not straight forward, there is again the problem of who benefits from the income and the transfer may trigger an immediate CGT liability. Overseas assets would also be subject to the law of that country.

caldi9

Keep_pedalling said:

caldi9 said:

Keep_pedalling said:

What sort of trust? What are you aiming to achieve with the proposed trust?

Life insurance as an example for optimised IHT.

Putting existing assets in trust is very different to having an insurance policy written in trust. You can’t for instance simply put your home in trust to take it out of IHT if you carry on living in it.  That would be classed as a gift with benefit of interest so would not drop out of your estate after 7 years.

Putting things like holiday homes or BTL into trust is also not straight forward, there is again the problem of who benefits from the income and the transfer may trigger an immediate CGT liability. Overseas assets would also be subject to the law of that country.

Ok, is there anything that could be put into a trust? This is from an IHT / Will perspective.

Keep_pedalling

caldi9 said:

Keep_pedalling said:

caldi9 said:

Keep_pedalling said:

What sort of trust? What are you aiming to achieve with the proposed trust?

Life insurance as an example for optimised IHT.

Putting existing assets in trust is very different to having an insurance policy written in trust. You can’t for instance simply put your home in trust to take it out of IHT if you carry on living in it.  That would be classed as a gift with benefit of interest so would not drop out of your estate after 7 years.

Putting things like holiday homes or BTL into trust is also not straight forward, there is again the problem of who benefits from the income and the transfer may trigger an immediate CGT liability. Overseas assets would also be subject to the law of that country.

Ok, is there anything that could be put into a trust? This is from an IHT / Will perspective.

Personally I would not put anything in trust, we have reduced our liability by making cash gifts and we have coved those against an early demise through term life insurance. If most of your wealth is tied up  in property it is more difficult to plan for IHT.  Trusts might be appropriate to you but you would need professional advice on that.

What is your marital status and net worth (joint if married or in a civil partnership)? Do you have children to leave the bulk of your estate to?

caldi9

Keep_pedalling said:

caldi9 said:

Keep_pedalling said:

caldi9 said:

Keep_pedalling said:

What sort of trust? What are you aiming to achieve with the proposed trust?

Life insurance as an example for optimised IHT.

Putting existing assets in trust is very different to having an insurance policy written in trust. You can’t for instance simply put your home in trust to take it out of IHT if you carry on living in it.  That would be classed as a gift with benefit of interest so would not drop out of your estate after 7 years.

Putting things like holiday homes or BTL into trust is also not straight forward, there is again the problem of who benefits from the income and the transfer may trigger an immediate CGT liability. Overseas assets would also be subject to the law of that country.

Ok, is there anything that could be put into a trust? This is from an IHT / Will perspective.

Personally I would not put anything in trust, we have reduced our liability by making cash gifts and we have coved those against an early demise through term life insurance. If most of your wealth is tied up  in property it is more difficult to plan for IHT.  Trusts might be appropriate to you but you would need professional advice on that.

What is your marital status and net worth (joint if married or in a civil partnership)? Do you have children to leave the bulk of your estate to?

It’s for our child and we are married. Not just real estate but also investments like sipp/isa/cash.

Keep_pedalling

caldi9 said:

Keep_pedalling said:

caldi9 said:

Keep_pedalling said:

caldi9 said:

Keep_pedalling said:

What sort of trust? What are you aiming to achieve with the proposed trust?

Life insurance as an example for optimised IHT.

Putting existing assets in trust is very different to having an insurance policy written in trust. You can’t for instance simply put your home in trust to take it out of IHT if you carry on living in it.  That would be classed as a gift with benefit of interest so would not drop out of your estate after 7 years.

Putting things like holiday homes or BTL into trust is also not straight forward, there is again the problem of who benefits from the income and the transfer may trigger an immediate CGT liability. Overseas assets would also be subject to the law of that country.

Ok, is there anything that could be put into a trust? This is from an IHT / Will perspective.

Personally I would not put anything in trust, we have reduced our liability by making cash gifts and we have coved those against an early demise through term life insurance. If most of your wealth is tied up  in property it is more difficult to plan for IHT.  Trusts might be appropriate to you but you would need professional advice on that.

What is your marital status and net worth (joint if married or in a civil partnership)? Do you have children to leave the bulk of your estate to?

It’s for our child and we are married. Not just real estate but also investments like sipp/isa/cash.

SIPPs are already excluded from your estate. (under the current rules) and IDAs can’t be put in trust. Excluding your SIPPs you have the ability to leave £1M IHT free, if you net worth is greater than that then you should use a small amount of it to take professional advice 

Marcon

caldi9 said:

Keep_pedalling said:

caldi9 said:

Keep_pedalling said:

caldi9 said:

Keep_pedalling said:

What sort of trust? What are you aiming to achieve with the proposed trust?

Life insurance as an example for optimised IHT.

Putting existing assets in trust is very different to having an insurance policy written in trust. You can’t for instance simply put your home in trust to take it out of IHT if you carry on living in it.  That would be classed as a gift with benefit of interest so would not drop out of your estate after 7 years.

Putting things like holiday homes or BTL into trust is also not straight forward, there is again the problem of who benefits from the income and the transfer may trigger an immediate CGT liability. Overseas assets would also be subject to the law of that country.

Ok, is there anything that could be put into a trust? This is from an IHT / Will perspective.

Personally I would not put anything in trust, we have reduced our liability by making cash gifts and we have coved those against an early demise through term life insurance. If most of your wealth is tied up  in property it is more difficult to plan for IHT.  Trusts might be appropriate to you but you would need professional advice on that.

What is your marital status and net worth (joint if married or in a civil partnership)? Do you have children to leave the bulk of your estate to?

It’s for our child and we are married. Not just real estate but also investments like sipp/isa/cash.

If this is for a newborn (and looking at your other posts that seems to be the case), are you setting up a trust fund for when the child reaches adulthood, or when both parents have died, or what? You've been asking quite a lot of questions on the topic, so it is clearly important to you. Maybe a chat with a solicitor is your next step?

caldi9

Marcon said:

caldi9 said:

Keep_pedalling said:

caldi9 said:

Keep_pedalling said:

caldi9 said:

Keep_pedalling said:

What sort of trust? What are you aiming to achieve with the proposed trust?

Life insurance as an example for optimised IHT.

Putting existing assets in trust is very different to having an insurance policy written in trust. You can’t for instance simply put your home in trust to take it out of IHT if you carry on living in it.  That would be classed as a gift with benefit of interest so would not drop out of your estate after 7 years.

Putting things like holiday homes or BTL into trust is also not straight forward, there is again the problem of who benefits from the income and the transfer may trigger an immediate CGT liability. Overseas assets would also be subject to the law of that country.

Ok, is there anything that could be put into a trust? This is from an IHT / Will perspective.

Personally I would not put anything in trust, we have reduced our liability by making cash gifts and we have coved those against an early demise through term life insurance. If most of your wealth is tied up  in property it is more difficult to plan for IHT.  Trusts might be appropriate to you but you would need professional advice on that.

What is your marital status and net worth (joint if married or in a civil partnership)? Do you have children to leave the bulk of your estate to?

It’s for our child and we are married. Not just real estate but also investments like sipp/isa/cash.

If this is for a newborn (and looking at your other posts that seems to be the case), are you setting up a trust fund for when the child reaches adulthood, or when both parents have died, or what? You've been asking quite a lot of questions on the topic, so it is clearly important to you. Maybe a chat with a solicitor is your next step?

Exactly, both. IHT/will are all related. Speaking to a solicitor.

Keep_pedalling

caldi9 said:

Marcon said:

caldi9 said:

Keep_pedalling said:

caldi9 said:

Keep_pedalling said:

caldi9 said:

Keep_pedalling said:

What sort of trust? What are you aiming to achieve with the proposed trust?

Life insurance as an example for optimised IHT.

Putting existing assets in trust is very different to having an insurance policy written in trust. You can’t for instance simply put your home in trust to take it out of IHT if you carry on living in it.  That would be classed as a gift with benefit of interest so would not drop out of your estate after 7 years.

Putting things like holiday homes or BTL into trust is also not straight forward, there is again the problem of who benefits from the income and the transfer may trigger an immediate CGT liability. Overseas assets would also be subject to the law of that country.

Ok, is there anything that could be put into a trust? This is from an IHT / Will perspective.

Personally I would not put anything in trust, we have reduced our liability by making cash gifts and we have coved those against an early demise through term life insurance. If most of your wealth is tied up  in property it is more difficult to plan for IHT.  Trusts might be appropriate to you but you would need professional advice on that.

What is your marital status and net worth (joint if married or in a civil partnership)? Do you have children to leave the bulk of your estate to?

It’s for our child and we are married. Not just real estate but also investments like sipp/isa/cash.

If this is for a newborn (and looking at your other posts that seems to be the case), are you setting up a trust fund for when the child reaches adulthood, or when both parents have died, or what? You've been asking quite a lot of questions on the topic, so it is clearly important to you. Maybe a chat with a solicitor is your next step?

Exactly, both. IHT/will are all related. Speaking to a solicitor.

An independent financial adviser might be worth speaking to as well.