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JustAnswerKM
JustAnswerKM, Solicitor
Category: Law
Satisfied Customers: 42
Experience:  Court of Protection, civil litigation, divorce and inheritance
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Should I put my home in trust adult sons in order to

Resolved Question:

Should I put my home in trust for my adult sons in order to make sure that in the event of a) divorce, b) bankruptcy or c) my needing to go into a care home their inheritance is protected?
Submitted: 1 year ago.
Category: Law
Expert:  JustAnswerKM replied 1 year ago.
Good eveningThank you for your message.The answer in short is yes if you place the property in trust for your sons for their benefit, you are relinquishing ownership and rights to the property (asset) therefore the property is not deemed as being yours but theirs so for divorce and bankruptcy purposes, it will not form part of your asset pool.However the danger of placing the property in trust is that you then no longer have full control of the property so ensure that the trust instrument makes provisions for you (such as allowing you to live in the property in your lifetime rent free etc.). Instruct a specialist trust Solicitor to ensure that the trust is set up correctly protecting your position at the same time. I hope that helpsBest of luck, Kind regardsKrystel*Please rate my answer so I can be credited for it.
Customer: replied 1 year ago.
What about care home fees? Should I need to ever go into a care home will the home or the council be able to make a claim on my property or my sons? What are the rules about this?
Customer: replied 1 year ago.
Sorry, I did not make myself clear. I meant in the event of their divorce or bankruptcy (not mine). Would a daughter-in-law or a son's creditor be able to make a claim on their inheritance?
Expert:  JustAnswerKM replied 1 year ago.
Good morning Regarding care home fees, the local authority (Council) will carry out a means test to work out how much you have to pay towards your care home fees. Currently, if you have assets of more than £23,250, you will need to pay the full cost of your care. They will also take into account your income. Therefore if you have relinquished (placed in trust) or gifted the property then it does not form part of your asset pool. The local authority cannot claim the property off your sons because it belongs to them. The property in trust for your sons essentially means they are benefiting from either income or capital generated from a property. In divorce and bankruptcy proceedings, this information will have to be disclosed. Once disclosed, the claiming party (i.e. daughter-in law or creditor) can then rightfully include it in a claim so the answer in short is yes they can potentially claim from your sons' inheritance. ThanksKrystel
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Expert:  JustAnswerKM replied 1 year ago.
Thank you for your rating