I am worried about inheritance tax and care home funding. Should I place my home into a trust?


In most situations this is not an advisable thing to do as you are losing control of the ownership of your own home.

There is no guarantee that it will be effective in protecting your home from care home funding as the “deliberate deprivation” rules could apply.

If you are continuing to live in, or have a benefit from the property, then it is likely to be included as part of your estate for inheritance tax purposes under the “gift with a reservation of benefit” rules.

You will also be placing your home into a special tax system known as the “relevant property regime” which could potentially result in charges on the trust being created (known as “entry charges”), ten year anniversary charges (known as the “periodic charge”) and charges when funds leave the trust (known as “exit charges”) which then also has special reporting requirements to H M Revenue & Customs.

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Would you like to know more?

For help and advice, talk to a member of our team. They can advise on the best options in your matter.

Call: 01708 229 444 Email us

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