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  • FIRST POST
    • andyph76
    • By andyph76 11th Jan 19, 6:02 PM
    • 1Posts
    • 0Thanks
    andyph76
    Putting houses into trust - being able to draw a living
    • #1
    • 11th Jan 19, 6:02 PM
    Putting houses into trust - being able to draw a living 11th Jan 19 at 6:02 PM
    HI,

    After some advice for an elderly neighbour, I have told him to go see a IFA but be good to get some ideas from here..

    He owns multiple homes which he rents out, he wants to put them into trust and get the rentals paid into the trust as well. he would then like to draw a living from the trust. is this possible? all houses are mortgage free.

    Any advice / recommendations for companies be greatly received.
Page 1
    • HappyHarry
    • By HappyHarry 11th Jan 19, 6:20 PM
    • 906 Posts
    • 1,329 Thanks
    HappyHarry
    • #2
    • 11th Jan 19, 6:20 PM
    • #2
    • 11th Jan 19, 6:20 PM
    HI,

    After some advice for an elderly neighbour, I have told him to go see a IFA but be good to get some ideas from here..

    He owns multiple homes which he rents out, he wants to put them into trust and get the rentals paid into the trust as well. he would then like to draw a living from the trust. is this possible? all houses are mortgage free.

    Any advice / recommendations for companies be greatly received.
    Originally posted by andyph76
    This looks like a very tax-inefficient and expensive method of achieving nothing.

    Sorry to be blunt, but what is it your neighbour is looking to achieve?
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
    • Keep pedalling
    • By Keep pedalling 11th Jan 19, 8:14 PM
    • 6,116 Posts
    • 7,070 Thanks
    Keep pedalling
    • #3
    • 11th Jan 19, 8:14 PM
    • #3
    • 11th Jan 19, 8:14 PM
    Sounds like a great way to generate a large CGT liability.
    • kidmugsy
    • By kidmugsy 11th Jan 19, 11:06 PM
    • 12,480 Posts
    • 8,846 Thanks
    kidmugsy
    • #4
    • 11th Jan 19, 11:06 PM
    • #4
    • 11th Jan 19, 11:06 PM
    The notion that Trusts are a marvellous tax avoiding device is probably encouraged by the Guardian and the Daily Mail, but much of the idea is fiction.

    I can't for the life of me see what it would achieve for him.
    Free the dunston one next time too.
    • Tom99
    • By Tom99 12th Jan 19, 8:46 AM
    • 3,808 Posts
    • 2,673 Thanks
    Tom99
    • #5
    • 12th Jan 19, 8:46 AM
    • #5
    • 12th Jan 19, 8:46 AM
    If your neighbour thinks a trust may benefit him then take advice from an expert. I am not sure whether that would be an IFA or maybe a expert in trusts and tax (STEP - Society of Trust and Estate Practitioners).
    Who are the beneficiaries of this trust to be?
    • xylophone
    • By xylophone 12th Jan 19, 1:12 PM
    • 28,903 Posts
    • 17,505 Thanks
    xylophone
    • #6
    • 12th Jan 19, 1:12 PM
    • #6
    • 12th Jan 19, 1:12 PM
    It seems that the OP's friend intends to gift the properties into a settlor
    interested trust.


    http://www.tolleytaxtutor.co.uk/taxtutor/files/subscriber/personal-tax/uk-trusts-and-estates/lectures/1d19.pdf
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