Putting houses into trust - being able to draw a living

andyph76
andyph76 Posts: 1 Newbie
First Anniversary
in Savings & investments
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.

Comments

  • HappyHarry
    HappyHarry Posts: 1,576 Forumite
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    andyph76 wrote: »
    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.

    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
    Keep_pedalling Posts: 16,591 Forumite
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    Sounds like a great way to generate a large CGT liability.
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
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    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
    Tom99 Posts: 5,371 Forumite
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    [FONT=Verdana, sans-serif]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).[/FONT]
    [FONT=Verdana, sans-serif]Who are the beneficiaries of this trust to be?[/FONT]
  • xylophone
    xylophone Posts: 44,348 Forumite
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    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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