Pass my property to my adult children in a trust or as a gift?

Fi1964

I have been reading up on the best way to leave my property to my 3 adult children, either via setting up a trust or by gifting it to them.

I am single, basic tax payer and they are all currently single, but obviously that could change in the future. Are there definite advantages to one over the other? I did read earlier that trusts can be problematic but it didnt say how.

Any help would be appreciated. Thank you in advance.

theoretica

Trusts can be an utter headache of paperwork - usually best to just leave it to them in your will without the encumbrances of it not really being theirs. 

sheramber

Are you meaning leaving it to them in your will?

or gifting it before you doe?

Keep_pedalling

If you are thinking of gifting your house while still alive, please don’t it would be an extreamly foolish thing to do. It does not reduce your IHT liability, and would be treated as deliberate deprivation of assets if you subsequently needed residential care.

Leaving a specific property in a will is bad practice as by the time you die you may no longer own it just leave all assets to be divided equally. 

thebullsback

Is part of your thinking to avoid Care Home fees? 

uss_tish

thebullsback said:

Is part of your thinking to avoid Care Home fees? 

I was advised by my solicitor not to gift/setup trust for my property. Advised to get financial and health LPAs in place then, in the hopefully unlikely event I ever need to go into a home, my children would have the authority to rent my property and use the income generated to pay care fees. 

kempiejon

uss_tish said:

thebullsback said:

Is part of your thinking to avoid Care Home fees? 

I was advised by my solicitor not to gift/setup trust for my property. Advised to get financial and health LPAs in place then, in the hopefully unlikely event I ever need to go into a home, my children would have the authority to rent my property and use the income generated to pay care fees. 

Roughly £800 a week for a place in a care home and £1,078 a week for a place in a nursing home. MiL sold granny's flat after 6 months.

Fi1964

sheramber said:

Are you meaning leaving it to them in your will?

or gifting it before you doe?

Gifting before I die.

Fi1964

thebullsback said:

Is part of your thinking to avoid Care Home fees? 

I just want my sons to have the house now really.

Fi1964

uss_tish said:

thebullsback said:

Is part of your thinking to avoid Care Home fees? 

I was advised by my solicitor not to gift/setup trust for my property. Advised to get financial and health LPAs in place then, in the hopefully unlikely event I ever need to go into a home, my children would have the authority to rent my property and use the income generated to pay care fees. 

What is an LPA please?

GDB2222

Fi1964 said:

uss_tish said:

thebullsback said:

Is part of your thinking to avoid Care Home fees? 

I was advised by my solicitor not to gift/setup trust for my property. Advised to get financial and health LPAs in place then, in the hopefully unlikely event I ever need to go into a home, my children would have the authority to rent my property and use the income generated to pay care fees. 

What is an LPA please?

Power of attorney.