Off Topic Legal Advice - Wills/Inheritance

Discussion in 'Sunderland' started by TopCat_SMB, Oct 4, 2021.

  1. TopCat_SMB

    TopCat_SMB Well-Known Member

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    Apologies, it seems to be my week for needing advice....

    So, long story short - my Dad is terrible with money and has been for years My Mum has bailed him out countless times and the last time she went to a solicitor who advised she arrange for him to sign the house over to her completely (to stop him taking out mortgages/loans against the house)

    As my Mum is in advancing years, she is looking to the future and wants to ensure the house is left to my sister and I whether if she passes before my Dad. Her worry is that he'd sell the house to clear his debts, or take loans against it etc

    After doing some research, she spoke to a company called Centurion Estate Planning who talked about putting the house in a trust so that my Dad would continue to have residential rights after she died, but my sis and I would own the house/have power of attorney etc

    Problem is, this company want to charge her £4,000 for the privilege and it seems rather steep. I wonder if it's just as simple as her signing the house over to me or my sis and doing that through conveyance solicitor....

    Has anyone any experience/knowledge in this area? Is 4k a reasonable amount to be charging?
     
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  2. Charley Farley

    Charley Farley Well-Known Member

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    You could try here:

    FreeWills.co.uk

    just leave the house to whoever you want to.
    It costs nothing.
    Of course, it only comes into effect after death so may not suit you.
     
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  3. safc-noggieland

    safc-noggieland Well-Known Member

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    My advice is that all families should have a financial eye on the future.
    Before elderly parents get too far into their dotage they can ‘sell’ their house to one or more offspring. With the proviso that they remain rent free tenants as long as they live.
    The buying price will be reduced to take into account the ‘lost’ rental income.
    Parents no longer are home owners but the family property is not at risk if one or both have to go into full time care.
    This precisely what we have done. <cool>
     
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  4. cumbrianmackem

    cumbrianmackem Well-Known Member

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    My wife has been in this game all her working life and this is her advice.
    1. Go see a conveyancer attached to a soloictor.
    2. Draw up a deed of gift from your mam to both you and your sister then rent the property back to your mam for a peppercorn rent, a nominal annual sum.
    3.Your mam needs to survive seven years from signing the house over to avoid death duty/ taxes.
    Any reputable firm of solicitor would draw this up for a fee in the low hundreds of pounds, she nearly fell off her chair at the mention of £4000, day light robbery she reckons.
    Hope that's some use, if you don't live in England then this advice might not apply.
     
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  5. TopCat_SMB

    TopCat_SMB Well-Known Member

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    Thanks mate. That's exactly the scenario I was hoping would exist
     
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  6. Gordon Armstrong

    Gordon Armstrong Just another S.A.F.C. fan
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    It probably doesn't make sense to gift the house into yours and your sister's name because there'd be an additional 3% stamp duty payable, assuming that you both already own your residential properties.
    The house can be put in a trust, which you'd have to pay for, but it shouldn't cost anywhere near £4,000 (I've arranged a few).

    Individual circumstances are what needs to be known before proper advice can be given, so nothing can be certain until more information is known, and here is obviously not the place to discuss those circumstances.

    If you'd like to discuss a little bit more, p.m. me :emoticon-0148-yes:
     
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  7. alan reed

    alan reed Well-Known Member

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    We put our house in trust for our kids four years ago. Cost us approx £3500 and well worth it. Means if we both end up in care then the house cannot be sold to pay for the care.
     
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  8. dyd13

    dyd13 Well-Known Member

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    We put our house into a trust for the kids. If for example I die first then half of the house or its value goes to my wife and the other half is divided between the kids, but it is held in a trust, my wife continues to live in the house and has full control of our savings and the kids have no access to either house or value until my wife dies and she lives in the house for the rest of her life.
    The benefit of doing it this way is that if for example I was to need to be placed in a care home in the future, then the State would only be able to claw back my half of the value of the house to pay for my care, the other half would still pass down to the kids when my wife dies.
    If I remember correctly this only cost about £400.00 and was done by my regular solicitor.
    Hope this helps.
     
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  9. safcyellowbelly

    safcyellowbelly Well-Known Member

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    TC, I’m a lawyer - don’t do the trust etc. work so I’m not touting for work!! £4k is a total rip off…
    I’d suggest your Mum & Dad find a local lawyer to advise - probably £750-1,000 depending on what the advice requires.
    If you want to PM me, let me know where they’re based and I’ll see if I can recommend someone local to them.
    Whilst everything everyone has said might be right …everyone has different circumstances that might influence the advice given. Best to get proper advice from someone who knows…
     
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  10. The Professor

    The Professor Well-Known Member

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    TMJ solicitors do family trust & dont think they charge anywhere near the 4k you have been quoted.

    Just quick point to remember, sure this is case but happy to be corrected, it will need to be in trust or whatever you decide for 7 years to be safe from being taken back to pay for care for example.

    good luck mate
     
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  11. Sunderpitt

    Sunderpitt Well-Known Member

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    Sound advice
     
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  12. marcusblackcat

    marcusblackcat SAFC Sheriff
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    I’ve left all my debt equally to my 2 kids!!
     
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  13. Sidthemackem

    Sidthemackem The owners of my club don't chop people up!
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    Just seen this. Beware the notion that you mum can gift/sell you the house and live in it rent-free or for a nominal rent and still have it outside of her estate for inheritance tax purposes. You can't. PM me if you want to discuss. It won't be a problem if the house and the rest of her estate is covered by her nil rate band & (possibly) the residence nil rate band, but this is NOT as simple as it seems. Depends on the numbers, as ever.

    Been giving tax advice since 1984, in case you were wondering...
     
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