Protective property trust

Madeinireland101

I don’t know a lot about these apart from reading a couple of articles that they are designed to protect your home as an asset - against bankruptcy, care fees etc.

i also read that - you can after a first death still sell on a property and that if there is a residual sum it can be invested for the survivor to draw an income.

My question is - if you went down that route would the residual fund also be protected for the remainder of your lifetime? If it is then isn’t it better to set it all up when you have a more expensive property rather than waiting to downsize before you set it up?

I’m effectively trying to work out if you are better to set this up straight away or wait if you are planning to downsize at some point in the future.

Thanks for any comments from anyone who can offer some tips 😀

Apologies if this is in the wrong area - I couldn’t see anywhere more appropriate.

Keep_pedalling

Terrible idea. There are sharks out there that will sell you these on the pretence that they will save you care costs but it would be treated as deliberate deprivation of assets, 

Are you really likely to go bankrupt in your later life? If that is something that is on the immediate horizon then it is not going to protect you.

https://www.kingsleynapley.co.uk/insights/blogs/private-client-law-blog/trusts-asset-protection-on-bankruptcy

Save you money and spend a little of those savings on wills and LPAs if you don’t already have those in place. You can include an immediate post death interest trust in your wills that will protect half of the house from care costs and in the event the surviving spouse remarries, but putting you home in trust during your lifetime is very really a good idea.

Marcon

Madeinireland101 said:

I don’t know a lot about these apart from reading a couple of articles that they are designed to protect your home as an asset - against bankruptcy, care fees etc.

i also read that - you can after a first death still sell on a property and that if there is a residual sum it can be invested for the survivor to draw an income.

My question is - if you went down that route would the residual fund also be protected for the remainder of your lifetime? If it is then isn’t it better to set it all up when you have a more expensive property rather than waiting to downsize before you set it up?

I’m effectively trying to work out if you are better to set this up straight away or wait if you are planning to downsize at some point in the future.

Thanks for any comments from anyone who can offer some tips 😀

Apologies if this is in the wrong area - I couldn’t see anywhere more appropriate.

Good example of why you shouldn't believe all you read.

Madeinireland101

Thanks - I already have wills and LPA - although they could probably do with an update - I think it was the immediate post trust interest trust that I was thinking about anyway to ensure on first death it passes to children. Did you get a word wrong in your last sentence - was “really” meant to be rarely? 

Marcon

Meant to add this to my post - which IS worth reading: https://www.radiotimesmoney.com/retirement/a-question-of-trust/

Albermarle

Keep_pedalling said:

Terrible idea. There are sharks out there that will sell you these on the pretence that they will save you care costs but it would be treated as deliberate deprivation of assets, 

Are you really likely to go bankrupt in your later life? If that is something that is on the immediate horizon then it is not going to protect you.

https://www.kingsleynapley.co.uk/insights/blogs/private-client-law-blog/trusts-asset-protection-on-bankruptcy

Save you money and spend a little of those savings on wills and LPAs if you don’t already have those in place. You can include an immediate post death interest trust in your wills that will protect half of the house from care costs and in the event the surviving spouse remarries, but putting you home in trust during your lifetime is very really a good idea.

A mistype ?

Albermarle

Marcon said:

Meant to add this to my post - which IS worth reading: https://www.radiotimesmoney.com/retirement/a-question-of-trust/

As well as a useful article, I also learnt that the Radio Times still exists, and has a website !

bjorn_toby_wilde

Albermarle said:

Marcon said:

Meant to add this to my post - which IS worth reading: https://www.radiotimesmoney.com/retirement/a-question-of-trust/

As well as a useful article, I also learnt that the Radio Times still exists, and has a website !

Don’t get your hopes up too high.  It’s not a very good website!

Keep_pedalling

Madeinireland101 said:

Thanks - I already have wills and LPA - although they could probably do with an update - I think it was the immediate post trust interest trust that I was thinking about anyway to ensure on first death it passes to children. Did you get a word wrong in your last sentence - was “really” meant to be rarely? 

Yes, blooming senior moment again 😫

dunstonh

Albermarle said:

Marcon said:

Meant to add this to my post - which IS worth reading: https://www.radiotimesmoney.com/retirement/a-question-of-trust/

As well as a useful article, I also learnt that the Radio Times still exists, and has a website !

Ahh, the memories of Christmas as a child and scouring the radio times to see what delights would be on the three channels that you could look forward to......

Yorkie1

dunstonh said:

Albermarle said:

Marcon said:

Meant to add this to my post - which IS worth reading: https://www.radiotimesmoney.com/retirement/a-question-of-trust/

As well as a useful article, I also learnt that the Radio Times still exists, and has a website !

Ahh, the memories of Christmas as a child and scouring the radio times to see what delights would be on the three channels that you could look forward to......

And everyone circling the programmes in different colour pens!