Setting up a trust

I am now a house owner, and I want to protect my investment. How do I set up a trust and how much will it cost?

When the 6th Duke of Westminster died last year, his son Hugh Richard Louis Grosvenor took on not just his father’s title but also an inheritance estimated at £9bn. Under conventional inheritance tax rules (IHT), this could have resulted in a £3bn bill for the 25-year-old, a figure not far removed from the entire death duty take by the government for the last financial year. Instead, he avoids the sizeable bill because the estate is held in a trust structure set up in the 1950s.

If you have assets which exceed the £325,000 nil-rate band

Can a house with a value of £120k be put in a trust?

https://www.theguardian.com/money/2016/aug/28/anyone-can-reduce-death-duties-on-the-family-money

If the rich can do it, why not the 'poor' like me?

I am now a house owner, and I want to protect my investment. How do I set up a trust and how much will it cost?

 

When the 6th Duke of Westminster died last year, his son Hugh Richard Louis Grosvenor took on not just his father’s title but also an inheritance estimated at £9bn. Under conventional inheritance tax rules (IHT), this could have resulted in a £3bn bill for the 25-year-old, a figure not far removed from the entire death duty take by the government for the last financial year. Instead, he avoids the sizeable bill because the estate is held in a trust structure set up in the 1950s.

 

 

 

Can a house with a value of £120k be put in a trust?

 

https://www.theguardian.com/money/2016/aug/28/anyone-can-reduce-death-duties-on-the-family-money

 

If the rich can do it, why not the 'poor' like me?

As the value of the house is significantly below the inheritance tax free threshold I'm not sure what the benefit would be anyway?

You can you this. You merely need to consult and instruct a solicitor, ideally one that is a member of the Society of Trust and Estate Practitioners (STEP), to prepare a trust. The solicitor will give you and indication of how much it will cost.

You, or the news report you have been reading is wrong though, the 7th Duke of Westminster did not inherit an estate worth £9bn, he became eligible, under the terms of the trust, to have receive more of the income from the trust than he was previously entitled to receive.

The trust owns the assets (the trust is a legal entity, like you and I are).

Are you willing to give your assets to a trust? Do you trust the Trustees of the Trust to allow you to live in your house while you are able to do so? The Dukes of Westminster clearly do trust their trustees.

As the value of the house is significantly below the inheritance tax free threshold I'm not sure what the benefit would be anyway?

Are you willing to give your assets to a trust? Do you trust the Trustees of the Trust to allow you to live in your house while you are able to do so? The Dukes of Westminster clearly do trust their trustees.

I was told yesterday that if you reach 80 years old, 50% of people will get dementia.

So if most of my asset can be saved from care costs, it will be worth it.

The Duke of Westminster set up his trust over 50 years before his death, if we all planned ahead like that, our tax system would be much fairer.