Putting property into a trust

UnsureAboutthis

I'm looking for concise, easy-to-read, and understandable info.
I've read threads on this site and I've noted they are often taken off topic and some try to bring in other factors that the thread starter may not be interested in.

We have a very decent income from our income trusts and several pensions and we also
go substantial lump sumps recently.

I/we are aware of IHT and the deprivation of assets rules/etc.  



We (married) want to leave our property in a trust to our children and grandchildren
We are relatively healthy and fit for our age.

What types of Trusts are available?
What are the potential pitfalls?
Who ensures the trust is processed properly when we are no longer here
What is the approximate cost of setting up a Trust and are other any ongoing fees?
Once it is set up, can we go back on this and how would that work.?

I will be grateful for your help and any recommendations you may be able to make.

I will act at my own risk and I will further investigate through a professional when I'm armed with your help.

(I've been reading the Web for a while but I often feel what I've read is too good to be true/hype and could end up to be costly.

UnsureAboutthis

Main home.
Save tax/etc/etc IE trying to ensure they are left with the property.

Keep_pedalling

Putting you home in trust is rarely a sensible thing to do, and it is not going to save any IHT as it will be considered a gift with reservation of benefit as long as you continue to live there. Paying the trust full market rent will overcome that but that leaves the trustees with the complication of managing that income and taxation associated with it and of course reduces your disposable income. 

If your estate is in excess of £1M it is better to gift liquid assets rather than your home.

poseidon1

[Deleted User] said:

There are so many permutations that concise is hard.  I guess for me the two key questions to make it easier to simplify things are:

1. What property?  Eg is this your home, farm, commercial buildings, BTL, etc

2. What's your objective? Save tax?  If so, what tax? Will IHT actually be payable if you die?  Don't trust the kids to spend it on wine, women and song (and waste the rest), have kids that are not able to look after themselves, etc. Benefit all equally? Etc

Have to agree with More_complicated_than_that.

I will occasionally try and  answer questions related to trusts  already in exsistence, or proposals for trusts for specific purposes  such as protecting financial interests of  the vulnerable and /or as a component of IHT planning. 

However the OPs  parameters are far to vague  and his  question   ( from my perspective ) seems to fall in the category of  ' what are the point of trusts , what do they do , and should I have one?'

What i can say is if he is  indeed looking for a ' concise easy-to-read and understandable' primer on English Trusts something like the link below is nearest I can think of and even this ( by its nature)  leaves alot unsaid.

https://www.litrg.org.uk/tax-nic/trusts-and-estates#12

UnsureAboutthis

That was quick.
Based on what was posted here, skim-read of link and a bit more searching on the Web, it is not for me/us So thanks for your time.

SiliconChip

UnsureAboutthis said:

That was quick.
Based on what was posted here, skim-read of link and a bit more searching on the Web, it is not for me/us So thanks for your time.

Given that your thread has only been running for just over an hour it seems a bit rash to make a decision already. While it may well be a non-starter it might be better to seek some advice from a STEP firm who can take all your circumstances into account and give you the information to make an informed decision.

https://www.step.org/about-step/public

poseidon1

OP, the information you shared on a separate thread below could be the basis of a specific conversation you could have have with a STEP qualified advisor in discussing future estate planning matters.

https://forums.moneysavingexpert.com/discussion/6565459/iht-question#latest

Frankly, since from that thread you have happily made outright  gifts to your children in the past, and your joint estate is not substantially above the IHT threshold, I struggle to see why trusts established either now or under the terms of your wills,  would be of particular benefit to your family, unless you have a specific desire to control when and how your grandchildren benefit from your estate after death.

 If you have such a desire, then that is better discussed with a professional having regard to your specific circumstances.