Lifetime ISA in relation to an Estate Protection Trust

DoNotBurnTheToast

Me and my hubby are in the process of setting up an Estate Protection Trust, with our two daughters names as trustees.  One of our daughters has a Lifetime ISA that she will use when purchasing her first house.  She is concerned about signing the paperwork, as she feels that she will lose her 25% bonus when she is ready to buy a property, as she will be a beneficiary of the trust at some point in the, hopefully, very distant future!  Can anyone shed any light on this?  

Keep_pedalling

If this is a cunning plan to put your home into trust reduce IHT it won’t work (look up gift with reservation of benefit) and is likely to lead to a bigger tax bill with the double whammy of IHT & CGT.

If this is a cunning plan to avoid care fees look up deliberate deprivation of assets, and have a think about whether you want to risk ending up in over my dead body grange at some point in the future.

Sorry but the only people who benefit from these trusts are the salesmen who charge a fat fee to set them up.

masonic

It's probably a question for your solicitor or whoever is setting up the trust, as they will be in possession of all of the facts. The term Estate Protection Trust is not one I've heard of. There are Asset Protection Trusts and Will Trusts.

Do be cautious about trusts designed to remove assets from a care home assessment, as these can lead to deliberate deprivation claims if it turns out years in the future that it was poorly executed or based on a closed loophole.