Putting your house in a trust

I would like to use equity release but I have been told that no providers will touch my property because one quarter of it is in trust for my 3 step children. I cannot change this because it was specified in my late husband's will. So I am stuck.

Doodledog

I'm not sure that it does give more choice - my MIL has recently gone into a care home (self-funded), and looked at several. All took state-funded residents, and a couple didn't have a place for MIL until another resident vacated their room.

I may be missing something, but I don't think she had any more choice than had she not been self-funding. The only difference is that her savings are dwindling fast. We (her children and ILs) all want what's best for MIL, and she's compos mentis, and can decide for herself anyway, so that's not an issue at all, but I don't understand why so many people seem to think that paying for care gives you advantages - in her case it didn't.

These days it definitely does as we are so very short of carehomes and availability. If social services has to pay they can legally place you anywhere that take funded patients regrdsless where in the country that is, so paople end up in cre homes hundreds of miles from their loved ones. Social have to give you 3 options and at least one of them have to have to take you without top ups. It is then up to you to accepte which one you want and can afford.

If you are self-funding you can choose where you want to go provided they have availability of course, you can search yourself much earlier than social would and make sure once your money runs out hey will not move you to a cheaper place. Most places ask for 2-3 years security if you are self-funding.

Hannahmac14

Don’t do it! If your other half passes away you will only own half the house - not enough in my case to buy something else. Luckily the grandchildren have all agreed to a Deed of Variation so the I take possession of the property.

It is usually written in that you can buy and sell as much as you like as long as if you downsize, the surplus is divided and the beneficiaries get 1/2 of the profit. It is also usually written in that the surviving spouse has a life long interest in the property.

M0nica

As I understand the law I can best explain by giving examples. I am assuming the couple in my example are not married because of complexities of IHT if married.

Joint Ownership
A & B own a house worth £500,000. A dies, their half of the house automatically becomes the property of the other joint owner. Their estate is nil. no IHT. B then dies. Their estate is worth £500,000, above the IHT exemption amount so tax will be paid
Tenants in Common
House details as before. A dies, his share of the value of the house, £250,000, forms part of his estate for tax. but because it is below the level for IHT, no tax is paid. B dies,now their estate is now only half of the value of the house, £250,000, This is below the IHT level so no tax is paid.

In the second example, A's estate is usually put into a trust for the benefit of family but giving the survivor a life-tenancy of the other half of the propeerty, icluding allowing it to be sold to buy a smaller property etc.

I think the usual thing to do is set up a Discretionary trust where the family are beneficiaries and trustees and the trustees can choose to give money to beneficiaries as they wish so that if someone goes into care, the house can be sold and when the survivors share of the cash is used up in care fees they can be given money from the trust.

However I am a not a lawyer, although I have studied law, and the law on trusts has been changed recently, but this is how I understand the law of ownership and trusts to work.

Monica you can used any unused allowance, plus family allowance so in effect you have up to 100.000 before tax.
www.google.com/aclk?sa=L&ai=DChsSEwiy9p6Kvc2UAxUbk1AGHYg5Gp0YACICCAEQARoCZGc&co=1&gclid=EAIaIQobChMIsvaeir3NlAMVG5NQBh2IORqdEAAYAiAAEgIM3_D_BwE&cce=1&sig=AOD64_1PlA4nHcEC8fBbfMNdfz0npuTSCA&q&adurl&ved=2ahUKEwjOwJmKvc2UAxW6Z0EAHcaSHBsQ0Qx6BAgwEAE

sorry I qouted the wrong post, I tend to post the one under instead of the one above.

Estrellita

What are the thoughts on equity release? Our daughters are dead against the idea.

There are two types. One where, in effect, you are taking out a mortgage which you can pay, or accrue the payments so that they are paid off when you die - this means that there is likely to be no value left in your home for them to inherit.

Not sure how the other one works, but they give you money in exchange for a % of your home so that they get some of the profit when it is sold. Because house value were rising rapidly, the lender was guaranteed a great return, but not sure if you can still get these.

I took equity release out of my three bedroom home to give my son a good deposit for him and his partner to buy a house
I can live here till I die then once I do die, my son will settle with the equity release and anything left will be divided between my three children
I can categorically state I will not be going into Care…

Shinamae

I took equity release out of my three bedroom home to give my son a good deposit for him and his partner to buy a house
I can live here till I die then once I do die, my son will settle with the equity release and anything left will be divided between my three children
I can categorically state I will not be going into Care…

I share your aims but what happens if you cannot be managed at home

David49

Shinamae

I took equity release out of my three bedroom home to give my son a good deposit for him and his partner to buy a house
I can live here till I die then once I do die, my son will settle with the equity release and anything left will be divided between my three children
I can categorically state I will not be going into Care…

I share your aims but what happens if you cannot be managed at home

I have the solution to that..

I think it’s pretty awful when people try to squirrel away funds in an attempt to get out of care fees. Apart from the fact that you’ll be found out anyway, why shouldn’t those who can pay their way do so? We pay for ourselves the rest of our adult lives if we can. Why shouldn’t those who can, not, just because we’re old?

Shinamae

David49

Shinamae

I took equity release out of my three bedroom home to give my son a good deposit for him and his partner to buy a house
I can live here till I die then once I do die, my son will settle with the equity release and anything left will be divided between my three children
I can categorically state I will not be going into Care…

I share your aims but what happens if you cannot be managed at home

I have the solution to that..

Assuming you mean the Dignitas route or similar. How do you know it will be possible. A svere stroke coming withoutwarning can completely immobilise youand leave you speechless. You may well need to go into care whether you have a solution or not.

win

Doodledog

I'm not sure that it does give more choice - my MIL has recently gone into a care home (self-funded), and looked at several. All took state-funded residents, and a couple didn't have a place for MIL until another resident vacated their room.

I may be missing something, but I don't think she had any more choice than had she not been self-funding. The only difference is that her savings are dwindling fast. We (her children and ILs) all want what's best for MIL, and she's compos mentis, and can decide for herself anyway, so that's not an issue at all, but I don't understand why so many people seem to think that paying for care gives you advantages - in her case it didn't.

These days it definitely does as we are so very short of carehomes and availability. If social services has to pay they can legally place you anywhere that take funded patients regrdsless where in the country that is, so paople end up in cre homes hundreds of miles from their loved ones. Social have to give you 3 options and at least one of them have to have to take you without top ups. It is then up to you to accepte which one you want and can afford.

If you are self-funding you can choose where you want to go provided they have availability of course, you can search yourself much earlier than social would and make sure once your money runs out hey will not move you to a cheaper place. Most places ask for 2-3 years security if you are self-funding.

Well, as I say, My MIL did not have any more choice than if she were being funded by the state. I'm not sure how you can say you know different, but I have watched every stage of the process with MIL and know what I said is true.

I don't know how likely it is that a council will take people from different ones, as everyone is struggling to care for their 'own' residents, so LAs are unlikely to make provision for those coming in from hundreds of miles away, even if the 'home' LA can legally ask, but we looked at a few homes, all local, and there was a choice between two with rooms available immediately. They are no more than about three miles apart, and equally accessible to her family.

You can only choose from what is available, and even then, as you say, that only applies to homes that have rooms at the time you need one. Most self-funders will have 2-3 years fees if they have to sell their home, whereas those without a home to sell will get the same care free. MIL and FIL lived very simple lives, going without expensive cars or fancy holidays. MIL was FIL's carer until he died, and lived alone (with both family and paid help) until past her hundredth birthday. There are those who spent their earnings, and probably those who have arranged their finances in trusts etc who pay no fees and have identical rooms, food and so on to MIL - what have been the advantages to MIL of paying her way?

Doodledog

I'm not sure that it does give more choice - my MIL has recently gone into a care home (self-funded), and looked at several. All took state-funded residents, and a couple didn't have a place for MIL until another resident vacated their room.

I may be missing something, but I don't think she had any more choice than had she not been self-funding. The only difference is that her savings are dwindling fast. We (her children and ILs) all want what's best for MIL, and she's compos mentis, and can decide for herself anyway, so that's not an issue at all, but I don't understand why so many people seem to think that paying for care gives you advantages - in her case it didn't.

A lot of fancy care homes are fussy who they take. We have one near us five star, they didn’t want to take my dad with dementia, even though dad was self funding.

My mother-mother-in-law was self funding Doodledog - she was able to buy-in amazing help - 24 hour care instead of what was available via social care.
Being self funding was definitely best for her.

Maybe it depends on the area then? MIL is happy where she is, and we are happy that she’s being well looked after. I’m not criticising the home at all, but our experience was not that there was more choice. As far as I can tell, the choice would have been the same if she hadn’t been self-funding.

MT62 Relatively few care homes have specialist dementia units, this is despite the fact that most residents in care home do, in fact, have dementia. This means that homes may not be able to cope with all people with dementia.

I was responsible for an uncle in a care home, He did not have dementia but bonded with the man in the next room over a shared love of classical music. That was until this man's dementia turned violent and he threatened my uncle with his stick and accused him of stealing his CDs. The care home asked his family to move him to another home as they did not have a specialist dementia unit and could not protect other residents from him 24/7

M0nica, you are correct. We can make plans, but.. precisely the scenario you described happened to someone I know.

M0nica, you are correct in saying that none of us know if/ when we might suddenly be in need of care. Precisely the scenario you described happened to a friend of mine. Her life changed overnight, requiring twenty four hour care.
Just a few years ago, she was ski- ing.

Oops! Sorry !

M0nica

Shinamae

David49

Shinamae

I took equity release out of my three bedroom home to give my son a good deposit for him and his partner to buy a house
I can live here till I die then once I do die, my son will settle with the equity release and anything left will be divided between my three children
I can categorically state I will not be going into Care…

I share your aims but what happens if you cannot be managed at home

I have the solution to that..

Assuming you mean the Dignitas route or similar. How do you know it will be possible. A svere stroke coming withoutwarning can completely immobilise youand leave you speechless. You may well need to go into care whether you have a solution or not.

Well, I’llJust keep my fingers crossed then… See you soon🥹

Shinamae

M0nica

Shinamae

David49

Shinamae

I took equity release out of my three bedroom home to give my son a good deposit for him and his partner to buy a house
I can live here till I die then once I do die, my son will settle with the equity release and anything left will be divided between my three children
I can categorically state I will not be going into Care…

I share your aims but what happens if you cannot be managed at home

I have the solution to that..

Assuming you mean the Dignitas route or similar. How do you know it will be possible. A svere stroke coming withoutwarning can completely immobilise youand leave you speechless. You may well need to go into care whether you have a solution or not.

Well, I’llJust keep my fingers crossed then… See you soon🥹

See you soon was picked up off the tv.😁