Putting family assets in a trust to shelter it

[LOVELYDOVEY05]

I am looking at a way of giving a property to a younger member of the family but apart from letting it out till he needs it/sells it what can I do to avoid him being stung later. I have heard you can set up some kind of a trust.

Are you trying to shelter it from Inheritance Tax or from something else? And is it your own main residence or a buy-to-let/investment property?

Sunseed, it is my home I Know friends of ours recently put their property in trust for their son. It is currently let but surely it would attract CCT once he sells it as it is not his main home? Not worried about Inheritance tax. Golden , different situation from you but it must rather embittering for you.

Do you mean your main home in which you live? If so you can't give it to a Trust (I don't care what your friends have done), continue to live in it, and not fall foul of the tax rules. In fact you can end up with a double tax charge.

If you really want to do something, speak to a lawyer.

Sorry, saw your friends is a buy to let. That's a totally different scenario.

Still not quite clear what you're trying to protect it from. As Dont says there are issues with putting your own home in trust and continuing to live in it that need proper legal advice. You would have potential tax issues as well as problems with deliberate deprivation of an asset in case of care needs.

It depends what you're worried about OP but if it's CGT after you die, on death the 'cost' of your assets get an uplift for CGT purposes, so if your son sold the property after you die he wouldn't have any CGT to pay.

I think it is probably best just to let it so he gets the income

Let it to whom? Where are you living?

It depends what you're worried about OP but if it's CGT after you die, on death the 'cost' of your assets get an uplift for CGT purposes, so if your son sold the property after you die he wouldn't have any CGT to pay

Yes because they are assessed for IHT, which is higher than CGT.

If you transfer a current property into Trust, it is assessed for CGT at that point. You can claim holdover relief, but when it is then sold, the Trust pays the tax, at the highest rate, with lower relief, calculated from the original purchase price.

If you hold an asset in Trust, the trust has periodic charges, income tax at 45%, CGT at 28%, exit charges, and a whole heap of ways of dealing, mitigating and working within the rules. Professional advice is essential.

Trusts seem to have taken on some mythical status. About 30 years ago they delivered on many of these areas; much of this has been shut down.

You only get assessed for IHT if you're over the threshold though and OP hasn't said that she is - she said she wasn't worried about that so I assumed she was under.

Is the 7 year loophole still in play? If so that

You get assessed for IHT on everything, even your bloody sofa. You are then allowed to apply allowances and exemptions.

You may not owe IHT but it is tge assessment for the tax that means the CGT is negated.

Please talk about things you know more about

Wow, that was nice. IHT is only payable on estates over £325k and So I thought she was saying she wasn't over that. I can assure you I do know lots about it but I'll shut up!

Nicely put Darcey

I'm sorry, but honestly people write such bollocks on these threads they are worthless. I'm 2 beers in I should shut the fuck up too-