Home Protection Trusts Bristol
Home Protection Trusts Bristol
We are really please to announce the opening of our new office in Bristol. Come and talk to us about Home Protection Trusts here in Bristol. We are sure our clear advice will be useful to you.
Home Protection Trusts - What is an Home Protection Trust
RLS provide Home Protection Trust to protect your home and your right of residence. This will esure the property will be passed directly to your beneficiaries after your death without the long delays in probate. The Home Protection Trusts also help to remove the value of your home from being included in local authority assesments for care home fees.
How does the Home Protection Trust work?
Upon signing your home protection trust is created with immedite effect. Your home is then transferred into the names of the Trustees of the trust, which is a legal requirement. The Trustees cannot sell your home within your lifetime, however, if you wish to move home then its the Trustees that must sell the home and where necessary buy an alternative property upon your request.
If, during your lifetime, you no longer need or can live in your home the Trustees can be instructed to sell your home and reinvest the proceeds to provide you with an income.
At the time of death (or the death of the survivor of a couple) the Trustees will close the trust and transfer the property or investments to your specified beneficiaries. The trust property will pass outside of your will and so there will be no requirement to wait for a Grant of Probate before the transfer is made to the beneficiaries.
Requirements of the Trust
The Home Protection Trust is suitable for any person that owns their home free from of any mortgage and that the property has a value of less than £325,000 (£650,000 for a couple who own it in equal shares).
Limitations of the Home Protection Trust
Should you need assistance with care home fees in the future it is possible that the local authorities will scrutinise the gift of your home into trust. If they can prove that a contributing factor for making the gift into trust was to save on care fees (or avoid paying them altogether) then they may be able to recover the value of the property.
Since your home would be gifted into trust, certain local authority grants for repairs and/or maintenance may no longer be available and so other arrangements may need to be made.
The value of your home will still form part of your estate for inheritance tax purposes (due to the remaining interest in possession).
If the trust continues for ten years the property (or investments) would be valued and added to any capital which had been paid out of the trust within the ten year period. If that value is more than the nil-rate band there would be an inheritance charge of 6% of the trust fund (this potential charge occurs on every tenth anniversary of the trust).
How do I Get Further Information?
For further information and advice we have opened a new office in Bristol. Our Home Protection Trusts Bristol office will be glad to speak with you and provice free advice with no obligation. You might also want to contact us by email or use our contact form.