Iht

Michele_Tant

Help Please.
Is it possible to put my property in trust for my children?.
I have lived alone with my 3 children ( now grown up, 2 still at home ), My partner moved in 10 years ago and although he only pays 'rent to me as he does not want to commit or deprive my offspring of their Inheritence. I am concerned however, that if anything happened to him either his ex wife or his family would feel they had a claim to MY property.

Is it possible to put my house into trust for my 3 children only, with my sister as trustee.?

Both me and my kids struggled for years and I'm so afraid to lose this. If I could do this, could I do it myself via my mortgage lender or, do I need a solicitor?.

I've even thought of transferrring ha;f the equity to my kids but I'd hate to restrict them in the future to buy themselves. I owe 6 years left on my mortgage.
Thanks

sneekymum

I thought you were looking for Inheritance TAX advice when i saw "iht"....

If your assets are worth less than £275K and you're really just trying to make double sure that the boyfriend's family have no claim on your house....(I've not heard of that one but if it worries you, do something - better safe than sorry)...

1. get a rent book - give him receipts for your rent received

2. get a tax return and declare the rent you receive - you won't pay tax on this under the "rent a room allowance" as long as the rent comes to less than £4000-ish (someone else can add the exact figure). But if you receive tax credits these will be reduced by 37p for each pound you receive.

I suppose that without this evidence that he pays rent you could be put in a situation where you have to agree he was paying to own a share in your house or else admit that you did not delcare the rent as income. If he died leaving dependants then I guess there could be some milage in them pursuing this.

Trusts - I don't like these - seems an over complicated way to approach things. It wouldn't work for avoiding Inheritance Tax anyway.