|
|
Post by 4l04ever on Feb 12, 2024 13:43:30 GMT 1
Anyone done this? Good or bad idea?
|
|
|
|
Post by midlifecrisisrd on Feb 12, 2024 14:13:32 GMT 1
Mine isn't in a trust but both our wills instruct it to be put into one when we both are gone as I have a disabled son so needs to be either there for him or sold and the proceeds used by the trustees to support him
I'm under Scots law so not sure how much difference that makes
The other "trick" is to have your will set up so that although jointly owned it doesn't automatically pass ownership fully to the other. Think it uses the clause equally and individually owned
Means if 1 dies first you have to go through a legal process to get the other half but think at that point you can give that half to someone else
Stops the care home forcing a sale to pay for care on the surviving partner 😉
Steve
|
|
|
|
Post by Robbieben on Feb 12, 2024 14:34:18 GMT 1
If you use a "Living Trust" it protects you and your assets in the trust, I'd also look at "Lasting Power of Attorney" for whoever you wish to look after your Trust. Lots of good info online regarding Trusts and their benefits.
|
|
|
|
Post by Norbo on Feb 13, 2024 6:20:41 GMT 1
I would look into the tax consequences when your dead and money or property is then your kids .
|
|
|
|
Post by urbantangleweed on Feb 13, 2024 7:31:47 GMT 1
Trust law can be complicated and as much as I don't like to feather the nest of any Solicitor, it's important to take proper legal advice on it so that it is all done correctly.
The main benefit of a Trust as I understand it is that property/money/other assets placed into it are deemed to be outside the Estate with regard to Inheritance Tax. In England, the basic allowance is £325,000, anything over that is subject to IHT at 40%, but this level rises if other things are in place (i.e. the beneficiary of the Will was Married to the deceased) which can increase the allowance to as much as £1,000,000.
My father passed away last November and as the Executor and Trustee of his will, I'm walking through the minefield of this presently and it's a fairly steep learning curve!
The incumbent Government keep talking about scrapping IHT (which in my opinion should be done) but they haven't yet so far got round to doing anything other than talking about it but they do see it as a vote winner. However, in recent months, Keir Starmer has stated that if IHT was scrapped before the next election and he subsequently became Prime Minister, one of the first things he'd do is re-instate it.
|
|
|
|
Post by midlifecrisisrd on Feb 13, 2024 9:45:48 GMT 1
If the tories scrap IHT it's because its a benefit to them
Not the average working man
I'd say it needs looked at, not scrapped. Higher threshold, lower rate maybe
Anyway, different topic from the thread so I'll leave it at that
Steve
|
|
|
|
Post by urbantangleweed on Feb 13, 2024 13:29:05 GMT 1
If the tories scrap IHT it's because its a benefit to them Not the average working man I'd say it needs looked at, not scrapped. Higher threshold, lower rate maybe Anyway, different topic from the thread so I'll leave it at that Steve I think you're right, a higher threshold and lower rate would make sense. |
|
|
|
Post by chrisg on Feb 13, 2024 23:10:15 GMT 1
If you use a "Living Trust" it protects you and your assets in the trust, I'd also look at "Lasting Power of Attorney" for whoever you wish to look after your Trust. Lots of good info online regarding Trusts and their benefits. LPA finance and health are both worth doing. There is a programme on 3 by Martin Lewis Money Show Live on this subject, he has an excellent site Moneysavingexpert.com, well worth a look. www.itv.com/watch/the-martin-lewis-money-show-live/2a1827/2a1827a0150Without LPA, if you end up with Dementia, the Social Services can deem you incapable of making your own decisions and put you into care, selling your house to pay for it. I've just started to look into this so will be interested in other peoples experiences. |
|
dex46
Thrash Merchant
Posts: 380
|
Post by dex46 on Feb 13, 2024 23:36:02 GMT 1
LPA Get it done ASAP I’ve been very fortunate regarding my father who has just had to go into a care home the adult social services lady who was appointed to my father witnessed my father saying he wants me to be in charge of his finances and well being (health) or else we as the family would of been down shit creek without a paddle once dad is settled and all the other crap is sorted I’m going to get mine done I’m only 55 but who knows what is around the corner
|
|
|
|
Post by beardy on Feb 13, 2024 23:46:35 GMT 1
LPA Get it done ASAP I’ve been very fortunate regarding my father who has just had to go into a care home the adult social services lady who was appointed to my father witnessed my father saying he wants me to be in charge of his finances and well being (health) or else we as the family would of been down shit creek without a paddle once dad is settled and all the other crap is sorted I’m going to get mine done I’m only 55 but who knows what is around the corner I went and did this LPA thing for my wife and I last year. For both health and welfare. I did the whole thing online and it costs about £320 if you do it yourself. A lot more if a solicitor does it. A bit of peace of mind 👍🏻 |
|
dex46
Thrash Merchant
Posts: 380
|
Post by dex46 on Feb 13, 2024 23:52:33 GMT 1
If you use a "Living Trust" it protects you and your assets in the trust, I'd also look at "Lasting Power of Attorney" for whoever you wish to look after your Trust. Lots of good info online regarding Trusts and their benefits. LPA finance and health are both worth doing. There is a programme on 3 by Martin Lewis Money Show Live on this subject, he has an excellent site Moneysavingexpert.com, well worth a look. www.itv.com/watch/the-martin-lewis-money-show-live/2a1827/2a1827a0150Without LPA, if you end up with Dementia, the Social Services can deem you incapable of making your own decisions and put you into care, selling your house to pay for it. I've just started to look into this so will be interested in other peoples experiences. Don’t know if it’s for yourself or an elderly family member my father has early dementia which has been accelerated by sepsis if it wasn’t through good fortune that we had a very good social worker on my dad’s case who witnessed my dad saying he wanted me to have control and the fact I’ve been doing that for for the last few years social would take full control of financial and health matters still got to sell the family home to pay for the care |
|
dex46
Thrash Merchant
Posts: 380
|
Post by dex46 on Feb 13, 2024 23:59:16 GMT 1
LPA Get it done ASAP I’ve been very fortunate regarding my father who has just had to go into a care home the adult social services lady who was appointed to my father witnessed my father saying he wants me to be in charge of his finances and well being (health) or else we as the family would of been down shit creek without a paddle once dad is settled and all the other crap is sorted I’m going to get mine done I’m only 55 but who knows what is around the corner I went and did this LPA thing for my wife and I last year. For both health and welfare. I did the whole thing online and it costs about £320 if you do it yourself. A lot more if a solicitor does it. A bit of peace of mind 👍🏻 I’ve just done dads and it was £82 each for the financial and health least it gives you a bit of control or the sharks 🦈 would have full control makes my piss boil that someone who worked all there life and made the right decisions for later life get fleeced for there care costs when someone who ain’t worked and potless get it all free |
|
|
|
Post by chrisg on Feb 15, 2024 14:45:07 GMT 1
Putting a house into trust appears to be a can of worms, either way there are tax implications.
|
|
|
|
Post by muttsnuts on Feb 19, 2024 11:15:18 GMT 1
it depends on your circumstances, trusts can be very tricky things I have all of my properties in my limited company, the company has 10 £1 shares, when the wife and I go the children inherit 5 £1 shares each, so no tax implications at all, after that it is upto them what they do, now its not a simple plop them into a Ltd company, like most things if done very shortly before death then HMRC will smell a rat, I've done mine over the last 20+yrs, for various reasons, but the big one was inheritiance tax implications for the children. Of course, I don't intend leaving the kids anything, I am going to spend it all.............  which is what I suggest you do as well !!  |
|
|
|
Post by urbantangleweed on Feb 19, 2024 11:27:33 GMT 1
Of course, I don't intend leaving the kids anything, I am going to spend it all............. which is what I suggest you do as well !! Sound advice that. |
|
|
|
Post by chrisg on Feb 20, 2024 16:41:27 GMT 1
it depends on your circumstances, trusts can be very tricky things I have all of my properties in my limited company, the company has 10 £1 shares, when the wife and I go the children inherit 5 £1 shares each, so no tax implications at all, after that it is upto them what they do, now its not a simple plop them into a Ltd company, like most things if done very shortly before death then HMRC will smell a rat, I've done mine over the last 20+yrs, for various reasons, but the big one was inheritiance tax implications for the children. Of course, I don't intend leaving the kids anything, I am going to spend it all............. which is what I suggest you do as well !! If the shares of the company are sold on, wont they be liable for capital gains tax? I was going to sell my house to my daughtes for a pound but told that they would be liable for CGT 🤬 |
|
|
|
Post by muttsnuts on Feb 20, 2024 20:15:19 GMT 1
it depends on your circumstances, trusts can be very tricky things I have all of my properties in my limited company, the company has 10 £1 shares, when the wife and I go the children inherit 5 £1 shares each, so no tax implications at all, after that it is upto them what they do, now its not a simple plop them into a Ltd company, like most things if done very shortly before death then HMRC will smell a rat, I've done mine over the last 20+yrs, for various reasons, but the big one was inheritiance tax implications for the children. Of course, I don't intend leaving the kids anything, I am going to spend it all............. which is what I suggest you do as well !! If the shares of the company are sold on, wont they be liable for capital gains tax? I was going to sell my house to my daughtes for a pound but told that they would be liable for CGT 🤬 no, because the total shares are only worth £10, they get £5 each Think of it like owning shares in say Shell, they (Shell) are worth billions of pounds, but you own £100 worth of shares, the fact Shell is worth billions doesn't mean you pay CGT on what the company is worth, only on the value of the shares, since CGT is based upon purchase price versus sale price, my shares have only ever been worth £1 each, of which there are 10 shares, so total value is £10, the fact the company is worth more that is irrelevant HTH |
|
|
|
Post by chrisg on Feb 20, 2024 20:28:20 GMT 1
If the shares of the company are sold on, wont they be liable for capital gains tax? I was going to sell my house to my daughtes for a pound but told that they would be liable for CGT 🤬 no, because the total shares are only worth £10, they get £5 each Think of it like owning shares in say Shell, they (Shell) are worth billions of pounds, but you own £100 worth of shares, the fact Shell is worth billions doesn't mean you pay CGT on what the company is worth, only on the value of the shares, since CGT is based upon purchase price versus sale price, my shares have only ever been worth £1 each, of which there are 10 shares, so total value is £10, the fact the company is worth more that is irrelevant HTH Wont CGT have to be paid when they sell the shares for their real value? I was hoping to sell my house for £1, but if they re sold it cor market value, tben it would attract CGT. HMRC have l the bases covered. *#@*! |
|
|
|
Post by muttsnuts on Feb 21, 2024 19:58:55 GMT 1
the shares real value is £1 each, that is it, nothing to do with the value or assets held within the company, if they sold the houses then there would be corporation tax to be paid on the profit, less any deductions allowable
|
|
|
|
Post by chrisg on Feb 23, 2024 22:43:53 GMT 1
the shares real value is £1 each, that is it, nothing to do with the value or assets held within the company, if they sold the houses then there would be corporation tax to be paid on the profit, less any deductions allowable Ahh. I suppose the real value of tbe business is you and your knowledge/expdrience.👍 |
|
which is what I suggest you do as well !! 