Leaving house in trust

FAB816

Hi, we have two children and when my husband and I pass this will be left to them to share equally. We are in the process of buying a new house. Would it be beneficial at this stage to put this into a trust for them now to save any issues later or are we just better leaving it in mine and my husbands names and it will still be left to the children when we die. We are in Scotland (not sure if rules differ)
Thanks x

TonyMMM

what issues do you think there will be  ?

Keep_pedalling

No, it would be an absolutely idiotic thing to do. The only type of trust you should consider are immediate post death interest trusts. Your wills could create one on the first death, which would put legal ownership of half the house into trust but beneficial ownership stays with the surviving spouse. 

This protects your children’s inheritance in the case of the remarriage of the surviving spouse and protects the long term security of the surviving spouse. It is also tax efficient as spousal exemption also applies to the bequest and there will be no CGT liability on your children’s inheritance when the house is eventually sold. 

RAS

Other than IPDI trust to which K_p refers, you might want to look round this forum to understand the difficulties quite a few people had or are encountering dealing with trusts set up, sometimes decades ago.

The donors' intentions were well-meaning by they've saddled their beneficiaries with additional taxes and legal fees, at best.

The only people who gain are generally those devising them, getting fees to sort the mess and HMRC, as well as specialist tax lawyers and accountants. 

FAB816

Thank you. I'm not sure what if any issues I thought my children would encounter but reading the other two replies it seems to be no that is not the route I should be going down. I think I need to read up on the subject of what happens with our estate when we die. I was just looking to make it as painless as possible for our children.
Thank you x

Emmia

FAB816 said:

Thank you. I'm not sure what if any issues I thought my children would encounter but reading the other two replies it seems to be no that is not the route I should be going down. I think I need to read up on the subject of what happens with our estate when we die. I was just looking to make it as painless as possible for our children.
Thank you x

The key one is having a clear Will with suitable executors and information on things like bank accounts, property, insurances etc. stored in a way that is easy for your executors to find.