Advice needed

Advice needed

Postby jm80 on Wed Jul 28, 2010 12:33 am

Hi, we're really in need of some good advice. Can't seem to get any off our solicitor, and not really sure where else to try.
My grandad bought 3 flats to rent out to help give myself and my parents more of an income, but at the time he wasn't aware of the problems that this could cause in the future.
I'm currently acting as a carer for my mum and my gran who has senile dementia and I get my rent paid for me along with carers allowance. My mum gets incapacity benefit and my dad claims benefits as well.
My grandads plan had been to give the flats to me or possibly to my parents, but unfortunately if I take ownership of the flats then I lose my carers allowance and rent. If my parents take ownership of the properties they lose access to their benefits. If my grandad ownes the properties and ends up in a care home, then he might be forced to sell them to pay for his care.
We're in a position where we just don't know what to do with these properties. I'd thought about a discretionary trust although I have absolutely no knowledge on the subject, but from what I've read it suggests that the tax rate for income in a discretionary trust is 40 or 50%, which would be far too expensive.
All of us live in N.Ireland, but the properties are in Scotland. The value of the 3 properties combined is around £160000, and the annual rental income is around £12000. Inheritance Tax shouldn't be a problem as my gran is still alive and between them they have a lot less than the IHT threshold.
What do you think would be the best way to deal with these properties? It would be important that someone could access the rental income, although it wouldn't matter who, as we could obviously just split up the cash ourselves.

Sorry if I haven't done a great job of explaining the situation well. Neither me nor my family have any knowledge of this subject, so if there's anything I've left out just ask.
Any advice would be greatly appreciated.
jm80
 
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Joined: Tue Jul 27, 2010 11:44 pm

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