Have you bought a house which the owner currently has in Trust?

I’m no expert but presumably it’s been left to numerous people who now have to agree to the sale. I may be completely wrong, time will tell and it could mean a drawn out affair.

It won’t necessarily take a long time. It sounds like the estate agent hasn’t a clue. Press him for more details. Don’t be scared off.

My mums house is in a family trust....she did it so her house couldn't be sold for care needs....it actually makes it easier when she's gone ( not for a long time I hope ?) .... as there will be no probate

The house we are in now was in Trust, the lady who lived in it had to get permission from her niece to sell and buy another.
We found the house in the September and we completed in the January of the following year.
This was over 20 years ago and I would like to think that things would have speeded up by now, but looking at various threads on GN, Solicitors seem to be as slow as ever.

PS I think it took so long because the niece also had to agree every piece of information that went between our Solicitors and also the new purchase by her Aunt, the paperwork had to be sent to her for approval before her Aunt (our seller) was able to sign anything.

My friend and her husband put their family home in trust to their 2 adult children, so that they could avoid having to pay for future care costs When the husband died, early last year, my friend decided to sell the house and down size to something smaller and cheaper to run. The conveyancing has been very convoluted because 3 parties have to be involved in every stage of the sale and purchase of a new property, which will also be in trust to the 2 adult children. The sale of the family home took so long, that the proposed purchaser got fed up and withdrew from buying it. So she lost the house she'd wanted to buy as well. 7 months down the line and she's still trying to sell and buy.

Chewbacca

My friend and her husband put their family home in trust to their 2 adult children, so that they could avoid having to pay for future care costs When the husband died, early last year, my friend decided to sell the house and down size to something smaller and cheaper to run. The conveyancing has been very convoluted because 3 parties have to be involved in every stage of the sale and purchase of a new property, which will also be in trust to the 2 adult children. The sale of the family home took so long, that the proposed purchaser got fed up and withdrew from buying it. So she lost the house she'd wanted to buy as well. 7 months down the line and she's still trying to sell and buy.

There wasn't a problem selling my mums when she's downsized....my and my DD just had to sign documents alongside my Mum ..... it took 4 months from offer to completion....pretty normal. I don't blame your friend wanting to avoid care costs ..... so did my Mum

We'd all like to avoid care costs but then who would actually pay them? By evading these you're making others pay. Take some responsibility.

Well put, Aveline.

Exactly so Adeline.

I agree Aveline. It's rather like tax evasion. When I hear stories like these I hope they were unsuccessful, as if someone has the means to pay for their care why should they contrive to ensure that the taxpayer pays? Putting your house in a trust and continuing to live in it otherwise than on payment of a market rent should mean that you pay for your care and also that the house is brought into account for IHT.

I know that I typed Aveline! Must have been my fury that gave me fat fingers.

Aveline

We'd all like to avoid care costs but then who would actually pay them? By evading these you're making others pay. Take some responsibility.

All her savings will go on care needs ( if needed) ....which will be considerably more than most people ever contribute.... so she will be doing her bit....it will only be the house proceeds that come to us in their entirety.....she's taking quite enough responsibility thank you .... you do you....we will do us

Don’t agree with that sort of arrangement Louisa. The savings may not amount to much. Should I as a taxpayer whose parents died long ago without needing care, and who would rather die than receive care, pay for your relative’s care so you can inherit their home? I hope you don’t succeed in your attempt to get the taxpayer to pay for your relative’s care when she can afford to do so.

I thought it wasn’t a simple thing nowadays putting your property in trust, hoping to avoid future care bills?

No, it would be considered to be ‘deliberate deprivation of assets’ for care purposes and if you continue to live in the property without paying the full market rent the property is still part of your estate for IHT purposes.

if you continue to live in the property without paying the full market rent the property is still part of your estate for IHT purposes.

I think that's what might be causing some of the delays in my friend's conveyancing. She mentioned something about how buying a new property would mean that the trust fund would have to be rewritten, due to new laws. I totally disagree with anything that would enable any one to shirk their financial responsibilities and so hope that it proves to be unviable to set up such trusts.

Thank you all. I think I realise what a Trust is now. Just worried about how long it might take to sort out. (We are moving out of our current home at the end of February.) I'm guessing though that we won't get to know the details so may not be able to make an informed decision.

Germanshepherdsmum

Don’t agree with that sort of arrangement Louisa. The savings may not amount to much. Should I as a taxpayer whose parents died long ago without needing care, and who would rather die than receive care, pay for your relative’s care so you can inherit their home? I hope you don’t succeed in your attempt to get the taxpayer to pay for your relative’s care when she can afford to do so.

Its all within the law so won't be a case of 'suceeding' ?

Germanshepherdsmum

No, it would be considered to be ‘deliberate deprivation of assets’ for care purposes and if you continue to live in the property without paying the full market rent the property is still part of your estate for IHT purposes.

Don't think you have a very good understanding of deprivation of assets?..... this trust was done many many years ago ....and even now at 85 my mum has no health issues therefore no known care needs

Aveline

We'd all like to avoid care costs but then who would actually pay them? By evading these you're making others pay. Take some responsibility.

Moral questions aside, what is often not considered is that if you self fund care costs, you can choose the time and place.

If the local authority is expected to pay, social workers who have to sanction a placement, will very often (understandably, because of the cost) put it off until there is literally no other choice.
Particularly when dementia is involved, this may well mean that family doing their best to care, will by then be on their knees with stress and exhaustion.
And the choice of care home will be usually be very limited.

What would I know as a former solicitor? The purpose behind the trust is clear and you’ve admitted it.

LOUISA1523

My mums house is in a family trust....she did it so her house couldn't be sold for care needs....it actually makes it easier when she's gone ( not for a long time I hope ?) .... as there will be no probate

That's not quite true as my father's house was in trust but we still had to get probate to sort out affairs after his death and the estate was not large

UKcareguide.co.uk 01.01.2022

It is possible to put your house into a Trust and assign your property to someone else, such as your children. However, there have to be other reasons as to why you put your property into a trust and not just because you don’t want to pay your care fees.

You cannot deliberately look to avoid care fees by gifting your property or putting a house in trust to avoid care home fees. This is known as deprivation of assets.

If you do this, your local authority will come after you, and possibly the person that was given the transfer of assets to reclaim what is owed.