I am often asked if trusts are still useful and whilst the tax breaks are less attractive than they once were, there is still a place for trusts in family tax planning.
I met a solicitor in Stockport today who specialises in trust and estate planning and we discussed recent things that we have done. He comes across several clients who are trying to plan for care home fees for their parents keen to protect their family home.
With the careful use of a properly drafted trust, he is able to protect their modest savings and the family home, when the time comes to go into residential care.
I explained the situation where a husband and wife owned a number of properties that they wished to pass on to their adult children but did not want to pay CGT on the gift and were also concerned about Inheritance Tax (IHT). He confirmed that either a variable life interest trust or a discretionary trust may be appropriate for the family but he wanted to meet them to discuss their particular circumstances.
I also passed on the details of the houses to a property surveyor in Oldham who I have worked with in the past and he is going to provide a market valuation of the property portfolio, so that we can choose which properties are to be settled.
This will be a nice piece of work involving myself, a trust lawyer, a surveyor and a conveyancing solicitor to produce a bespoke product which is absolutely right for this client. All under the umbrella of PB Taxation Services Ltd.