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Has anyone prepared a lifetime trust themselves as oppose to just paying a solicitor? Scenario being an elderly relative transferring property into a lifetime trust to secure residency in their lifetime but dispose of the asset now for CG/IHT purposes.
Solicitors quote c£2400 to prepare this but the same are also quoting £120 for a simple codocil to vary the executor and £500 for a lasting power of attorney which seems typically steep (though realise issues are important hence legal protection etc). Just wondering about the DIY route before I get a few more prices if that's not advisable....
Be careful on lifetime gifts especially if you are trying to put assets beyond social services, and that is your motivating factor - it wont work.
For iht purposes it will be of no effect if the relative will be staing in the property as this will constitute a reservation of a benefit and the property will still drop into their estate for iht.
assuming the reletives ppr is what is being transferred there is no chargable disposal if not you are going to risk double tax, cgt on the disposal during lifetime and iht on death (assuming the reservation point above the 7 year potentialy exept transfer wont apply).
you will also need to bear in mind that lifetime settlement carry an inital charge to iht and are subject to 10 yearly payments thereafter.
the quote you mention seem very high.
Nipper99 - thanks. I'm aware of the social services issue but the relative in question is of sound mind/good health and just wishing to tidy up his affairs now but limit certain financial risks that would be present via straight gift i.e. beneficiary's divorce etc. I can't see any issue re Social Security going forward as/if that proves an issue but we'll no doubt see - providing motive is general financial planning years before rather than last minute 'avoidance' can they really try to challenge?
Thanks for your other observations, I'll maybe try a couple of other solicitors as my gut feeling is the price is high but then it always is. I think the £185ph charge has something to do with it.... 😉
There is a Law Society guidance note on gifts of property - see if you can find it on the Society's web site.
Cheers have alrady viewed that. Intention is as stated, to ensure property stays in family as there are some marital issues that could make outright gift risky. Thanks again.