How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask JGM Your Own Question

JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 10256
Experience:  30 years as a practising solicitor.
31090051
Type Your Law Question Here...
JGM is online now

I am 82 and in reasonably good health. I have a house which

Resolved Question:

I am 82 and in reasonably good health. I have a house which is valued at around £400K. I have a will leaving all my estate to be divided among my three sons when I die. I have a sizeable investment bond and which I need not touch and a very adequate income. It has been suggested that I leave the house in "Trust" for my sons which will protect it in case I outlive my good health and have to be taken into care. Are there any disadvantages?
Submitted: 1 year ago.
Category: Law
Expert:  JGM replied 1 year ago.
Thank you for your question. I am a Scots solicitor and will help you with this.
There are disadvantages to putting your house in trust. The trust will have a potential capital gains tax liability on an eventual disposal. The transaction could be looked on as depravation of assets by a local authority were you to require nursing home care. However, if yoir main aim is to avoid the house being used to pay for care then I wouldn't necessarily worry about that as from what you say your income and investments would pay for that.
I do think, however, that given the size of your estate, you may need some specialist advice on Inheritance Tax Planning. That in itself may involve setting up a trust or even transferring the house inter vivos to your sons with a formal leaseback by you and payment of rent to your sons to avoid any issues of inheritance tax involving the house. If you don't pay a rent it will be treated as a gift with reservation and tax would remain payable. In addition, you would have to survive seven years from the transfer to allow the house to be exempt from your estate for IHT purposes. Again this may have CGT implications but they could be outweighed by the IHT saving.
I think you benefit from a face to face meeting with a qualified financial adviser before making any final decisions.
There is another advantage in organising your affairs in order to save Inheritance Tax and that is that because such schemes are for the better management of your affairs and less likely to be challenged by a local authority in the event that you do seek funding for your care.
I hope this helps.
Please leave a positive response so that I am credited for my time.
JGM, Solicitor
Category: Law
Satisfied Customers: 10256
Experience: 30 years as a practising solicitor.
JGM and 2 other Law Specialists are ready to help you

What Customers are Saying:

 
 
 
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
 
 
 

Meet The Experts:

 
 
 
  • Jo C.

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
< Previous | Next >
  • http://ww2.justanswer.com/uploads/EM/emus/2015-7-7_192327_bigstockportraitofconfidentfemale.64x64.jpg Jo C.'s Avatar

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
  • http://ww2.justanswer.com/uploads/BE/benjones/2015-12-1_0437_ennew.64x64.jpg Ben Jones's Avatar

    Ben Jones

    UK Lawyer

    Satisfied Customers:

    11553
    Qualified Solicitor - Please start your question with 'For Ben Jones'
  • http://ww2.justanswer.com/uploads/BU/Buachaill/2012-5-25_211156_barrister5.64x64.jpg Buachaill's Avatar

    Buachaill

    Barrister

    Satisfied Customers:

    1754
    Barrister 17 years experience
  • http://ww2.justanswer.com/uploads/JO/jojobi/2013-3-19_0265_maxlowryphoto.64x64.jpg Max Lowry's Avatar

    Max Lowry

    Advocate

    Satisfied Customers:

    894
    LLB, 10 years post qualification experience
  • http://ww2.justanswer.com/uploads/UK/UKLawyer/2012-4-12_9849_F2.64x64.jpg UK_Lawyer's Avatar

    UK_Lawyer

    Solicitor

    Satisfied Customers:

    750
    I am a qualified solicitor and an expert in UK law.
  • http://ww2.justanswer.com/uploads/KA/Kasare/kasare.64x64.jpg Kasare's Avatar

    Kasare

    Solicitor

    Satisfied Customers:

    402
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law
  • http://ww2.justanswer.com/uploads/OS/osh/2015-7-7_19268_gettyimagesb.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    8199
    LL.B (Hons), Higher Prof. Dip. Law & Practice