Gift with reservation of benefit.

fulham99

What are the implications of placing our house in a trust and continuing to live in it rent free

Jeremy535897

Not good. It will depend on the nature of the trust, but typically it will mean that the house remains part of your estate for inheritance tax, but the capital gains tax main residence exemption may be lost for gains after the transfer. It's hard to see any benefit.

MacPingu1986

Lots of implications, mostly negative that make it hard to see any benefit or just add unnecessary complexity than the much simpler situation of owning the house that you live in yourselves.


You'll need to find a trustee to run and administer the trust, who will do this and how will it be funded?

Having given away your house to the trust, what if the trustee determines in their discretion as trustee that a market rent should be charged, or that the trust should rent the house out to different tenants?

Keep_pedalling

It would be an exceedingly dumb thing to do, it does not save any tax and could actually increase the total tax liability.

BoGoF

No doubt a stupidly thought out plan to try and avoid property being sold for care fees in the future.