With increasing media attention being given to ‘Horror
Stories’ about Inheritance Tax and nursing home fees, it is no wonder that
Brits are becoming increasingly concerned about losing the assets they have
worked hard for all their lives.
Transferring your property to your children, placing the
property in trust or creating a ‘family trust’ can sometimes be helpful,
however in the majority of cases it could land you with a large tax bill,
usually capital gains tax. It is important to remember that you lose all
control over the property. For example,
you may transfer your property to a child only to find that they become
bankrupt or divorced, if this happens your home may be sold as part of the
bankruptcy or divorce.
The regulations regarding nursing home fees are very
broad. If your intention is to avoid
nursing home fees, the local authority has the power to ignore the transfer or
trust you have created.
Given the above and the fact the cost of setting up the unnecessary
trust can run into thousands of pounds, it is vital that you take advice from a
solicitor or accountant before entering into these schemes.
Please be aware that solicitors cannot under strict
regulations cold call you, only salesmen will. If in doubt you can check on the
Law Society’s website.
Please contact Jan, Donna or Katherine for further information.
