When it comes to Trusts, we help you get the right advice
Why do I need advice on Trusts?
Did you know that if you sign over your house to your children during your lifetime in an attempt to shelter it from being used to pay care fees:
- A local authority can ignore the transaction, without limit of time, if they consider that a significant reason for doing it was to avoid paying long term care fees – and why else would you give your house to your children and continue to live in it?.
- The value of the house will be added back into your estate for the calculation of Inheritance Tax unless Income Tax is paid on the rental value of your home - even if you are not actually paying rent to your children.
- Unless your children live with you, the house will be subject to Capital Gains Tax on its increased value from the date of the transfer.
- If your children become involved in a marital dispute or financial difficulties, your home may be considered to be part of their assets and could form part of any settlement that they have to make.
You may be able to protect your home (and your savings) from being used to pay for your care fees and avoid all of the above risks by transferring your assets to a trust during your lifetime. However, it is important that any transfer takes place while there is no imminent prospect of the need for care.
To find out more, please contact Private Will Services on 02380 070 169