A Trust is a legal agreangement between 2 or more Trustees to own/hold an asset on behalf of the beneficiaries. I've shot a few different videos on this. Here's one: ua-cam.com/video/zuVOiiEJwLw/v-deo.html
I am now 78. My wife is 62. 7 years ago, on advice, we gave my house to my daughter to hold in trust for my 3 grandchildren, subject to an irrevocable free tenancy for life for my wife and myself. My daughter is also the legal owner of another property, formerly owned by my parents. This was left to her in their will but was subject to a free tenancy for life for me (but not my wife) with power to sublet. I therefore have the rental income. Hopefully when my wife and I pass, our affairs will be straightforward.
How then , 3 grandchildren ( when you will be no longer here ,they will grow) will deal with your , one house ? In trust means no paying taxes? And, no able to sell , just free rent and will pass to future generations in similar way ?
@@evgeniynagornyak1150 A Trust can protect from future IHT and Care Fees - but there will still be Council Taxes to pay as well as utilities. The trust does not eliminate the operational costs of a home.
In the UK, inheritances are usually not considered matrimonial property by the Court. So it doesn't happen 'all the time'. This is scaremongering. Also CGT is chargeable on trust assets once sold by beneficiaries.
@@MPEstatePlanningUK ah right I see. My mother set up a trust just over a year ago trying to avoid her house being used to pay for care costs does the 7 year rule apply on this?? She is a very fit lady but if care is needed within the 7 years can they still take the house to fund?
@@ianwilliams7375 Don't worry about them taking your inheritance to pay for care home fees as like the man says.... it's in a trust so they can't touch it The council will then pop your loved ones into a high end care home with large easily accessed and well cared for gardens, private ensuite rooms, lifts, daily activities with transport laid on as required, private chef, restaurant, hairdresser, various lounges for quiet times, playing games and TV etc........... In real life of course, they're unlikely to be in the same care homes as people paying £1,500+ a week with the above facilities but hey, the family home will be safe in trust where you can leave it to your own children when your turn comes for a care home.
What if one starts a property company and make the children as directors and shareholders of A and B Shares. Would that be as good as Trusts and less expensive?
This can work. Taxes on businesses change every budget. Taxes on trusts change once a generation or so. Trusts normally win out over time, and are less expensive in the main.
I am a single parent to two adult children. If I leave my home in a discretionary trust, I was shocked to learn they’ll still have to pay 40% IHT on the amount above £335k and the £175k allowances. I thought trusts eliminated the beneficiaries, in this case my children, paying taxes?
Trusts CAN help protect assets above £500k from IHT - BUT you will need some tax planning in addition to the trusts. We do this everyday of the week (did two more today). Speak with a professional estate planner or give us a call. Mike
I have been contemplating a trust for my child but I can’t get my head round the face that there must be a caveat…why aren’t everyone creating trusts if it was so easy. I’m horrible at admin does it require a lot of accounting work on a yearly basis?
Two Q's in one; here we go: 1) 53% of adults in the UK will die without even a basic will - people don't use trusts because they don't want to learn/know/talk about this stuff(?) 2) There should be ZERO annual fees or additinal costs if you place your family home into a family home protection trust, and you and your partner (and adult chidlren are the trustees). How was that? Mike
Can you still protect your parents property against the care fees even if they have been diagnosed with Altzimers and the family has an LPA for health and well-being and also finances
Yes. A diagnosis is not the same as a 'foreseeable need for care'. We've put hundreds of family homes into Trust and never had a problem. Check out this week's longer video talk directly about diagnosis and care - I've had a case on this very matter.
If you can get your loved one to hand over power of attorney to you early on it makes life a heck of a lot easier if they are showing signs of dementia.
You need to plan everything or the state will take it. A lot of my clients have now sold their homes and have got a million in the bank. Renting will ensure they can spend the capital and ensure the local authorities can’t take advantage if you go into care. This only applies if you are of a certain age of course Also ensure you have a deed of trust in place ( pre nup ) Also ensure you have tenants in common etc etc
Really depends on what you need. We are the only(?) company that fully publishes all of our prices. Both on our website and YT. ua-cam.com/video/H1XTaQQyGf0/v-deo.html
I have wills and Probate made threw a solicitor for my wife my daughter and two grandchildren age 23 and 16 I am 84 and my wife is 80 should I get a trust.
@brianyoung8818 I have a bias towards Trusts - so my answer will be "Yes". However, it really depends on what you want to accomplish. Is there a tax problem? (+£1m) Is there a possible Care situation in the future? Will the kids or g'kids get a divorce? These are all solvable with planning. I've had clients in their 90's so it's never too early.
Hi , wife transfered her share £350,000 to kids they now own half my house , i still own my share how do i stand if any of kids spouses want a a divorce
If your children get a divorce, the transferred value would be part of their financial settlement. The house may need to be sold to pay the bill. Parents can end up homeless - I've seen it happen. If you put the home into a Trust, the home can stay with the family and not go to your child's future ex.
This is absolutely solid advice. My brother organised this 13 years ago with our parent’s home. They both ended up going into care homes several months later. They had a decent amount of liquid assets so we didn’t need to rely on the sale of their home in the end, but if it had come to that the trust would have protected it. When the local authority assessed their assets the family home was not be included in their calculations even though it was only done a few months before. They both died within a year or so and we were able to sell the home ourselves and benefit from their hard work, just as they wanted us to.
Love it..........People looking at the possibility of not losing the family home to pay care home fees. Dementia care home fees for my father and mother-in-law cost around £1,200 a week each but were lovely homes which took very good care of our family. This of course meant their house values covered about three years of payments. Put the house into a trust and whoohoo, nothing to pay for care home........ Fine as long as you fancy spending the last few years of your life in a very basic council provided care home. Friends of ours saw their mother in a council run care home for eight years so just think about that while your children enjoy the spoils of your hard work.......
@@liamtheurchin5569 When the cash runs out, the family are asked if they can provide the weekly payments which is a huge draw on anyone's finances. Failure to do so results in your loved one being moved into council care home facilities with great upheaval for them. Our thinking was a good couple of years in dementia care home before that horrible disease wiped their memories making the inevitable move less traumatic. Neither of them survived more than two months, for which were thankful as they were little more than living shells by then!
@@liamtheurchin5569 If they've placed the home into Trust, they then have options such as renting out the property or selling it. Using the funds to "TOP UP" Local Authority care is the key idea.
Well put ..when Dad needed a care home we had choice and found him the right place for him to end his days in he loved it…so glad his end of life was so joyful….glad we had choice, no money no choice .
I’m not gifting my home to my kids, I’ve given them both deposits and furniture for there own homes. I’m selling my home and enjoying spending it on myself. A house is bricks and mortar, you can’t take it with you when you die. Enjoy your life before you die, I might go rent in Spain. 🤣🇬🇧
![What Is The Difference Between A Will And A Lifetime Trust? [Estate Planning Basics]](http://i.ytimg.com/vi/vPtVifJxQmg/mqdefault.jpg)
Can you explain all the steps involved in setting up a trust please .. no one ever tells this important part.
A Trust is a legal agreangement between 2 or more Trustees to own/hold an asset on behalf of the beneficiaries. I've shot a few different videos on this. Here's one: ua-cam.com/video/zuVOiiEJwLw/v-deo.html
Brilliant presentation. Thank you.
Thanks for the compliment, glad it is helpful. M
Thank you for the amazing content over the last year. If you ever do any 1 day workshops please do let me know. Your teaching style is excellent!
That's very kind of you to say. Will think about a workshop.
You have very much opened my eyes. Thank you.
Pleased to be helpful. Glad you caught it now - most people sleep walk into the problems. Thanks for following! M
This was super helpful. I will be sharing this.
Thank you, Marni! Appreciate the feedback. 😄
Thank you, I hope it’s the same now 2024, and not been changed too much, worth looking into
@corinneaggar9755 Definitely worth a look. Mike
I am now 78. My wife is 62. 7 years ago, on advice, we gave my house to my daughter to hold in trust for my 3 grandchildren, subject to an irrevocable free tenancy for life for my wife and myself. My daughter is also the legal owner of another property, formerly owned by my parents. This was left to her in their will but was subject to a free tenancy for life for me (but not my wife) with power to sublet. I therefore have the rental income.
Hopefully when my wife and I pass, our affairs will be straightforward.
Well done! Thanks for sharing.
How then , 3 grandchildren ( when you will be no longer here ,they will grow) will deal with your , one house ?
In trust means no paying taxes?
And, no able to sell , just free rent and will pass to future generations in similar way ?
@@evgeniynagornyak1150 A Trust can protect from future IHT and Care Fees - but there will still be Council Taxes to pay as well as utilities. The trust does not eliminate the operational costs of a home.
So glad i found the channel. Subscribed
Cool! Glad it's helpful, Mike
In the UK, inheritances are usually not considered matrimonial property by the Court. So it doesn't happen 'all the time'. This is scaremongering. Also CGT is chargeable on trust assets once sold by beneficiaries.
Concise and informative thanks !
Appreciate the compliment. We try harder. Mike
Very good
Thanks Jeff
Hi thanks for a great video. Once a trust is set up is there a 7 year rule from initial set up ?
The 7 year rule is about taxes. It's easy to get the two confused. Gifting assets takes 7 yrs for them to be 100% outside the estate. M
@@MPEstatePlanningUK ah right I see. My mother set up a trust just over a year ago trying to avoid her house being used to pay for care costs does the 7 year rule apply on this?? She is a very fit lady but if care is needed within the 7 years can they still take the house to fund?
@@ianwilliams7375
Don't worry about them taking your inheritance to pay for care home fees as like the man says.... it's in a trust so they can't touch it
The council will then pop your loved ones into a high end care home with large easily accessed and well cared for gardens, private ensuite rooms, lifts, daily activities with transport laid on as required, private chef, restaurant, hairdresser, various lounges for quiet times, playing games and TV etc...........
In real life of course, they're unlikely to be in the same care homes as people paying £1,500+ a week with the above facilities but hey, the family home will be safe in trust where you can leave it to your own children when your turn comes for a care home.
What if one starts a property company and make the children as directors and shareholders of A and B Shares. Would that be as good as Trusts and less expensive?
This can work. Taxes on businesses change every budget. Taxes on trusts change once a generation or so. Trusts normally win out over time, and are less expensive in the main.
I am a single parent to two adult children. If I leave my home in a discretionary trust, I was shocked to learn they’ll still have to pay 40% IHT on the amount above £335k and the £175k allowances. I thought trusts eliminated the beneficiaries, in this case my children, paying taxes?
Trusts CAN help protect assets above £500k from IHT - BUT you will need some tax planning in addition to the trusts. We do this everyday of the week (did two more today). Speak with a professional estate planner or give us a call. Mike
What if one of ur parents is in a care home and the other parent is ok still living in there home. Can you still put house in trust or is it too late
You can still put the home into Trust.
I have been contemplating a trust for my child but I can’t get my head round the face that there must be a caveat…why aren’t everyone creating trusts if it was so easy. I’m horrible at admin does it require a lot of accounting work on a yearly basis?
Two Q's in one; here we go:
1) 53% of adults in the UK will die without even a basic will - people don't use trusts because they don't want to learn/know/talk about this stuff(?)
2) There should be ZERO annual fees or additinal costs if you place your family home into a family home protection trust, and you and your partner (and adult chidlren are the trustees).
How was that? Mike
Can you put your house in trust before you have paid off the mortgage?
Yes. Over 60% of the properties we protect for families have mortgages. Here's a 30 second vid that explains: ua-cam.com/video/R5Jqh3uDIww/v-deo.html
What if the heirs from the trust , want to sell the house .? Is there a tax liability there.?
it depends
What happens if there is an outstanding property IOU and the sibling has NOT returned it?
Loans can be recalled.
How does this work for foreign assets? Ie a property in another country.
We only deal with assets in England and Wales. Foreign assets would best be dealt with by planning in that country.
Can you still protect your parents property against the care fees even if they have been diagnosed with Altzimers and the family has an LPA for health and well-being and also finances
Yes. A diagnosis is not the same as a 'foreseeable need for care'. We've put hundreds of family homes into Trust and never had a problem. Check out this week's longer video talk directly about diagnosis and care - I've had a case on this very matter.
If you can get your loved one to hand over power of attorney to you early on it makes life a heck of a lot easier if they are showing signs of dementia.
You need to plan everything or the state will take it. A lot of my clients have now sold their homes and have got a million in the bank. Renting will ensure they can spend the capital and ensure the local authorities can’t take advantage if you go into care. This only applies if you are of a certain age of course
Also ensure you have a deed of trust in place ( pre nup )
Also ensure you have tenants in common etc etc
Sooooo how much does it cost to set up. Ball park figure
Really depends on what you need. We are the only(?) company that fully publishes all of our prices. Both on our website and YT. ua-cam.com/video/H1XTaQQyGf0/v-deo.html
A solicitor in the UK will quote you a fee if you ask.
I have wills and Probate made threw a solicitor for my wife my daughter and two grandchildren age 23 and 16 I am 84 and my wife is 80 should I get a trust.
@brianyoung8818 I have a bias towards Trusts - so my answer will be "Yes". However, it really depends on what you want to accomplish. Is there a tax problem? (+£1m) Is there a possible Care situation in the future? Will the kids or g'kids get a divorce? These are all solvable with planning. I've had clients in their 90's so it's never too early.
Hi , wife transfered her share £350,000 to kids they now own half my house , i still own my share how do i stand if any of kids spouses want a a divorce
If your children get a divorce, the transferred value would be part of their financial settlement. The house may need to be sold to pay the bill. Parents can end up homeless - I've seen it happen. If you put the home into a Trust, the home can stay with the family and not go to your child's future ex.
@@MPEstatePlanningUK thankyou
@@magnus9701Glad to help.
Setting up a trust fund is very complicated and expensive
It can be - though most of our clients seem pretty happy. Here's a recent review: ua-cam.com/video/1yiCiAy1ogo/v-deo.html
And it’s definitely worth it when you consider what your loved ones will lose if you don’t!
This is absolutely solid advice.
My brother organised this 13 years ago with our parent’s home. They both ended up going into care homes several months later. They had a decent amount of liquid assets so we didn’t need to rely on the sale of their home in the end, but if it had come to that the trust would have protected it. When the local authority assessed their assets the family home was not be included in their calculations even though it was only done a few months before. They both died within a year or so and we were able to sell the home ourselves and benefit from their hard work, just as they wanted us to.
@@topchic7475 Nailed it! M
@@topchic7475 Absolutely Brilliant! Thanks for sharing. M
Money power is evil, greed, selfish ruins relationships
Agree, and it's second only to having no money and descending into a life of crime, need, and exploitation.
Swallow the pill and have the difficult conversation about money & assets. Your future self will thank you big time!
Brilliant comment!! People work their whole lives then fail for want of a simple conversation.
Love it..........People looking at the possibility of not losing the family home to pay care home fees.
Dementia care home fees for my father and mother-in-law cost around £1,200 a week each but were lovely homes which took very good care of our family. This of course meant their house values covered about three years of payments.
Put the house into a trust and whoohoo, nothing to pay for care home........ Fine as long as you fancy spending the last few years of your life in a very basic council provided care home.
Friends of ours saw their mother in a council run care home for eight years so just think about that while your children enjoy the spoils of your hard work.......
Most folks focus on retaining control of their choices - Trusts provide the control.
What happens when the money runs out? Will they be evicted to the basic council care home?
@@liamtheurchin5569 When the cash runs out, the family are asked if they can provide the weekly payments which is a huge draw on anyone's finances.
Failure to do so results in your loved one being moved into council care home facilities with great upheaval for them.
Our thinking was a good couple of years in dementia care home before that horrible disease wiped their memories making the inevitable move less traumatic. Neither of them survived more than two months, for which were thankful as they were little more than living shells by then!
@@liamtheurchin5569 If they've placed the home into Trust, they then have options such as renting out the property or selling it. Using the funds to "TOP UP" Local Authority care is the key idea.
Well put ..when Dad needed a care home we had choice and found him the right place for him to end his days in he loved it…so glad his end of life was so joyful….glad we had choice, no money no choice .
I’m not gifting my home to my kids, I’ve given them both deposits and furniture for there own homes. I’m selling my home and enjoying spending it on myself. A house is bricks and mortar, you can’t take it with you when you die. Enjoy your life before you die, I might go rent in Spain. 🤣🇬🇧
5:10 "people like to congregate..." Or in this context perhaps you meant they like to conjugate? 😈
50ml of nembutal, no care home fees
Or 5 litres of rum