Fans wills

[mattyboy]

All good advice and I wouldn't disagree with any of it...

 

However, there can be complications and technicalities that anyone entering into this kind of succession planning should be aware.

 

This sort of advice is isn't cheap and although the future benefits may make it worthwhile, the client should always be familiar with the set up and running costs of such a plan.

 

Although your comment about deliberate deprivation of assets is correct if you carry out this planning at a later stage of life this rule cannot be relied upon and should be given with a caveat . The last 12 months have seen local authorities scrutinise this in more detail.

 

Also from a less technical perspective, even if an asset protection plan worked, and a care home resident did manage to secure a local-authority funded place, the resident would end up with potentially less choice about where to go.

 

People just need to make sure that planning is robust and done early...and they use a good IFA/Accountant...which I'm sure you are! :):)

 

For clarity this isn't as asset protection option - which local authorities are tackling more and more

Its giving your assets away in your will - a legal freedom we all have

It can't be a deprivation as you're dead. The survivor owns all their own assets, including in such cases half their house

As regards cost, compared to a simple mirror will I charge around £500 including the severance of the tenancy. As the trust created is a life interest trust (usually) there are no onerous ongoing requirements as the asset does not acquire any income, which is where trusts can create a problem, as they are taxed very differently to personal assets

 

Where you are correct is that you should always be careful to understand what it is you are doing, and beware any plan that creates a trust in your lifetime if you can - they are likely to be attacked (though the HASSASSA regulations may help, particularly with regard to timescales, I'm nervous of guaranteeing the safety of such measures as the motives seem difficult to justify particularly as you can spend thousands on such measures)

[Animal]

For clarity this isn't as asset protection option - which local authorities are tackling more and more

Its giving your assets away in your will - a legal freedom we all have

It can't be a deprivation as you're dead. The survivor owns all their own assets, including in such cases half their house

As regards cost, compared to a simple mirror will I charge around £500 including the severance of the tenancy. As the trust created is a life interest trust (usually) there are no onerous ongoing requirements as the asset does not acquire any income, which is where trusts can create a problem, as they are taxed very differently to personal assets

 

Where you are correct is that you should always be careful to understand what it is you are doing, and beware any plan that creates a trust in your lifetime if you can - they are likely to be attacked (though the HASSASSA regulations may help, particularly with regard to timescales, I'm nervous of guaranteeing the safety of such measures as the motives seem difficult to justify particularly as you can spend thousands on such measures)

 

I see what you're getting at...although you would need to be sure that the surviving spouse is going to reside in the property until such a time they die or require a care home...if the property generates an income this can cause complications...also the nil valuation rule on the other 50% has been challenged in the courts a few times and where the joint owner doesn't reside in the property there have been cases where this share has been deemed to be capital for the purposes of the fees calculation.

 

From my experience there are a number of warnings that should be given when carrying out this planning as a client can unknowingly be caught out in the future if intentions or relationships between parties (including trustees) change.

 

Robust and well informed planning is needed and the client should understand every element as opposed to just seeing it as one off cost solution.