Putting House into a Trust

[SpokeyDokey]

Only just began researching this with no fixed outcome in mind, just exploring what is possible.

If anyone has any info' to share re pro's, con's and personal experiences they would be gratefully received.

 

[Kingfisher101]

Why are you wanting to do that? If its to protect against possible care home fees you wont be protected now from that.

 

[vickster]

Talk to a solicitor

 

[T4tomo]

Talk to a solicitor

what in preference to 2nd hand unqualified and outdated information from random people on the interweb?

 

[SpokeyDokey]

Why are you wanting to do that? If its to protect against possible care home fees you wont be protected now from that.

Inheritance tax.

 

[Kingfisher101]

Inheritance tax.

Get proper estate planning from a solicitor as advised. FYI inheritance tax thresholds have now risen for your children. Its called main residence nil rate band.

 

[Emanresu]

Inheritance tax.

Have done this but not for the IT issue. Another reason, but used a solicitor.

Not difficult. Not expensive in relation to what you hope to save but there are a few wrinkles you will have to work out beforehand. For example, if one of the partners/spouses dies what happens to their accomodation? Do they get to stay there? Are there specific requests and will that affect the structure of the deed. So see a solicitor who specialises in this.

 

[Once a Wheeler]

As a general comment, apart from obvious things such as SIPPs and ISAs, tax avoidance for people with less than £5m in the bank is likely to be more expensive and more hassle than paying the tax. Definitely take professional advice.

 

[SpokeyDokey]

Get proper estate planning from a solicitor as advised. FYI inheritance tax thresholds have now risen for your children. Its called main residence nil rate band.

I thought the two allowances for nil rate tax were £325000 & £175000 and double that for a couple.

Has this changed and I've missed it?

 

[SpokeyDokey]

As a general comment, apart from obvious things such as SIPPs and ISAs, tax avoidance for people with less than £5m in the bank is likely to be more expensive and more hassle than paying the tax. Definitely take professional advice.

What's that advice based on please?

We aren't that rich but are into 7 figures. Hence, one reason why we are considering the option.

 

[T4tomo]

I thought the two allowances for nil rate tax were £325000 & £175000 and double that for a couple.

Has this changed and I've missed it?

that is correct, the 175k is the RNRB referred to. certain caveats like total estate under £2m and residence must be being left to kids etc

 

[Kingfisher101]

I thought the two allowances for nil rate tax were £325000 & £175000 and double that for a couple.

Has this changed and I've missed it?

No,This is what I mean.
If I were you, I'd get what available money you have(aside from the property) spent. That's what I tell my relatives.

 

[Emanresu]

Have you considered giving some of it away so there is no tax to pay? You can use a Trust / backup life insurance for that purpose - before you go.

 

[SpokeyDokey]

Have you considered giving some of it away so there is no tax to pay? You can use a Trust / backup life insurance for that purpose - before you go.

We give money to the kids each year.

Will have a look at cash into a Trust - not sure how thst works though.

 

[SpokeyDokey]

No,This is what I mean.
If I were you, I'd get what available money you have(aside from the property) spent. That's what I tell my relatives.

Okay, so it hasn't changed, thanks.

Spending savings, investments for the sake of it is not really our thing. We live a very nice life to be honest and don't hold back for the sake of the kids. But, there really isn't anything we need and we have done a lot in the years we have been together and apart from a small number of holidays on our wish list we are more than satisfied with our lot.

On the other hand, for reasons that I don't really want to go into on here, it pleases us greatly that they will be very nicely set up for their old age once we are gone (hopefully a good while off yet!).