Clinical Negligence
Serious Injury
Accident Claims & Fatal Injuries
Personal Injury Claims
Serious Injury Rehabilitation, Treatment and Support
Criminal Injury Claims
Court of Protection
Wealth Protection
Estate Planning and Wills
Inheritance Tax Planning
Asset Protection
Business Succession Planning
Estate Administration and Probate
Trusts
Divorce and Family Law
Separation, Divorce, Dissolution of Civil Partnership
Child Arrangements
Financial Considerations in Separation, Divorce and Dissolution of Civil Partnership
Prenuptial, Postnuptial and Cohabitation Agreements
About
Sorry, we couldn’t find any results... Please try a different search term.
Often known as Property Protection Trusts or Asset Protection Trusts
Lifetime Trusts are often known as Property Protection Trusts or Asset Protection Trusts. Unlike Will Trusts, which come into being on your death, lifetime trusts are established straight away. Your home is gifted to the trust, which allows you to carry on living in it.
It is generally not possible to use a Lifetime Trust to exempt your home from the local authority’s calculations of your assets, when assessing your care home costs.
The tax treatment of Lifetime Trusts is something one should consider carefully. Because you gift the house to the trust, it can attract inheritance tax if it’s worth more than the nil-rate band (currently £325,000).
Those who transfer their property to a Lifetime Trust may face an immediate 20% charge on any balance over £325,000 (including gifts made in the previous seven years), while the trustees must submit tax accounts to HMRC. They may have a further tax bill every 10 years, worth 6% of the value over £325,000, plus income tax on any payments from the trust, plus exit charges on assets.
If the trustees sell assets within a trust, these may also be subject to capital gains tax. These may also apply if a trust is liquidated and everything is passed to the trustee.
Capital gains tax will be calculated the same way as it is for individuals, though the annual allowance is smaller – £6,000 in 2019-20 and £5,850 in 2018-19. The exception is if the trust has been set up for a someone disabled – in which case the annual allowance is £12,000 in 2019-20 (and £11,700 in 2018-19).
It is therefore vital you seek advice before setting up a Lifetime Trust, as the tax implications can be significant. This is especially true if the beneficiaries of the trust aren’t UK residents, as the rules can quickly become even more complicated.
Our specialist team are experienced in drafting Lifetime Trusts for clients in line with their personal circumstances. If you would like to speak to a member of the team, please contact 03333 058375 or email WealthProtection@psg-law.co.uk
Read our Wealth Protection FAQs
Director, Court of Protection & Wealth Protection
t:07497 839796
e: gareth.williams@psg-law.co.uk
Partner, Wealth Protection
t:07301 218133
e: nina.sperring@psg-law.co.uk
Senior Associate, Wealth Protection
t:07399 781788
e: gail.galloway@psg-law.co.uk
Legal Assistant, Wealth Protection
t:07399 565976
e: lydia.palmer@psg-law.co.uk
t:07399 803662
e: marie.fletcher@psg-law.co.uk
Paralegal. Wealth Protection
t:07946 579067
e: suzanna.warburton@psg-law.co.uk
Paralegal, Court of Protection & Wealth Protection
t:07957 958134
e: alexandra.hales@psg-law.co.uk
“
“Gail has been very professional, polite and quick to respond throughout the transaction. Would happily recommend.” Mick Jennings
1/7
“Top class solicitors, provided a hassle free, professional service… if you’re looking for a firm that really seems to care, charges reasonable fees and doesn’t swallow you up in legal jargon - I’d highly recommend giving them a call.” Anne-Marie Armstrong
2/7
“The whole team has been accessible and very well informed.” Legal 500
3/7
“I have received a very caring and professional service from both Laura and Gail. All my concerns were answered in a considerate and prompt fashion. Thank you very much.” Justine Abrahams
4/7
“Gail is my solicitor and has helped me in every stage of my husband’s estate. Because I can no longer write she has simplified things for me and is very approachable whenever I ring, and doesn’t make me feel stupid when I ask stupid questions!” Margaret Borthwick
5/7
"Very personable and friendly, technically very strong and very ethical and client focused." Legal 500
6/7
"Gareth Williams, can give advice to HNW individuals with complex planning needs and also acts as a professional deputy for individuals who have been awarded significant personal injury and medical negligence claims, technically very strong and has a great understanding of the needs of the client and how to provide the appropriate solutions and service." Legal 500
7/7
∕ Wealth Protection
Life Interest Trusts
A life interest trust is a trust arrangement which is created to provide a beneficiary or beneficiaries the income from...
Gifting
Lots of parents and grandparents want to gift money or assets to help their children or grandchildren with expensive life...
Complex Wills
Complex Wills are designed to protect your beneficiaries and your estate from particular scenarios. They can also be used to...
If you would like to speak with one of our expert lawyers, just call or email using the information below, or complete this form.
The importance of updating your Will: Safeguarding your legacy
How to ensure digital assets are accessible after death
Estate planning for blended families
"*" indicates required fields