family trusts

curlichef

My two siblings and I are discussing with my Parents to have a family trust set up.
They still have a mortgage on their home which we wish to pay off for them, but we do not want to loose our money that we invest to pay the property off.
Will a family trust with the three of us as trustees and my parents as beneficiaries benefit us here?

Regards

Marcon

curlichef said:

My two siblings and I are discussing with my Parents to have a family trust set up.
They still have a mortgage on their home which we wish to pay off for them, but we do not want to loose our money that we invest to pay the property off.
Will a family trust with the three of us as trustees and my parents as beneficiaries benefit us here?

Regards

You need proper professional advice, not opinions on a public website where you've no idea who is answering - and, of course, nobody here knows your circumstances in detail, or holds PI insurance against which you could claim if the answer is hopelessly incorrect.

Such trusts can sometimes be helpful, other times definitely not. See https://www.ellisonssolicitors.com/news/asset-or-family-protection-trusts-too-good-to-be-true/ for a warning bell or two before you go any further.

NlghtOwl

Family trust could be a good idea if the estate is worth several million as they add complexity and can be costly, then it’s worth paying for sensible advice. Good luck

Sea_Shell

curlichef said:

My two siblings and I are discussing with my Parents to have a family trust set up.
They still have a mortgage on their home which we wish to pay off for them, but we do not want to loose our money that we invest to pay the property off.
Will a family trust with the three of us as trustees and my parents as beneficiaries benefit us here?

Regards

Could you not just investigate putting a charge against the property for either £x or x%.   You just replace the mortgage, in effect, with yourselves.

For modest estates, from what I've read, trusts don't always achieve what you hope (think) they will.

Will you only want your money back on second death?  Or if they move (downsize) in the meantime?

Keep_pedalling

You don’t need a trust or to become part owners of their house. You can make it a loan and secure it with a charge against the property.

Family trusts are generally flogged by dodgy salesmen for high fees after scaring the home owners about care fees.