Placing Home in a Family Trust



 
Yes it does but can only be done before any diagnosis not afterwards. Assuming the house is owned by 2 Partners they can put half house in trust each.
 
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Yes but it takes years doesn't it?. Bit of an awkward conversation to have with the person who it affects but it has to be done. Basically if you don't the house gets sold to cover the care costs
 
Seek proper legal and tax (Including inheritance tax) advice.
I would say that no legal professional or decent tax advisor would (nor should they) give you any guarantees of success.

Seek the advice and guidance from someone who knows what they're doing and once furnished with all the facts (and risks if it goes wrong) then you can make your own decisions. But please don't do anything based on the opinion of people on here.
 
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Any experiences? Does it help protect home from care costs if set-up correctly?
We did it. It worked in that the council ignored it when it came to pay care home costs.

But make sure you get the paperwork correct. Solicitors fees were massive when it came to transferring it to the ownership of my missus and her sister, after their parents passed away.
 
Any experiences? Does it help protect home from care costs if set-up correctly?

You don't describe the situation (which is fair enough), from what I have read on here and elsewhere "tenants in common" Seems to be the thing to look at, but this will depend on the specific situation.
 
Expensive to do and comes with no guarantee of success. Do not listen to anyone who says it’s fine as long as you do it x many years before needing care. There is a lot of misinformation out there.
It recently cost nearly £3.5k for my elderly friend to sort the house, new living will and LPA for both finances and health and well being.

Hopefully it'll work out well but, as you said, no guarantee of success.
 
We did it. It worked in that the council ignored it when it came to pay care home costs.
But make sure you get the paperwork correct. Solicitors fees were massive when it came to transferring it to the ownership of my missus and her sister, after their parents passed away.
I guess its still full conveyancing fees each time it changes, so about a grand each side each time?

But if it saves £100+k by not losing the house.....

Does make you think, if these mechanisms get blocked, why not just sell the house to an equity release firm, and then gift the money instead - that's tax free as long as its 8 years or so before the inheritance rules kick in.
 
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I guess its still full conveyancing fees each time it changes, so about a grand each side each time?

But if it saves £100+k by not losing the house.....

Does make you think, if these mechanisms get blocked, why not just sell the house to an equity release firm, and then gift the money instead - that's tax free as long as its 8 years or so before the inheritance rules kick in.

You can only gift £3000 a year tax free.
 
It recently cost nearly £3.5k for my elderly friend to sort the house, new living will and LPA for both finances and health and well being.

Hopefully it'll work out well but, as you said, no guarantee of success.
I'm a lawyer but this isn't my area at all.

I bumped into my uncle in the pub. He was going down this route (after professional advice) and had been quoted something like £12k by a law firm to do everything. I said that it sounded pricey so got a quote from a firm that we work with that was under £2k. He was happy with everything that they did. DM if you want the details of the firm.
 
Struggling to find clarity on that, because everyone just talks about the 3k limit and then that tax "may" be payable via IHT. However, this line is pretty clear from Gov.uk

"No tax is due on any gifts you give if you live for 7 years after giving them"
 
I'm a lawyer but this isn't my area at all.

I bumped into my uncle in the pub. He was going down this route (after professional advice) and had been quoted something like £12k by a law firm to do everything. I said that it sounded pricey so got a quote from a firm that we work with that was under £2k. He was happy with everything that they did. DM if you want the details of the firm.
That's very kind of you thanks but I'm already sorted.
 

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