Trust

[pfd17]

Hello, I am looking to invest approx.£1.m into a property for the benefit of my son, whom is at present 15 y.o.
what would be the best way of doing this? any suggestions.

[section 44]

bare trust and transfer the legal title to him when he comes of age

[maths]

Bare trust easy to set up and not complicated.

However, if a bare trust is used and the property is rented out it will be the parent trustee who incurs the income tax charge thereon.

The gift to the bare trustee will be a PET for iht which would be significant if parent donor dies within 7 years (temporary life assurance should be taken out).

At age 18 son can demand property (and sell it if he wants to).

On the other hand, problem with settling cash or property on discretionary trust is an immediate iht charge arises (albeit at 20% not 40%).

Depending upon final legislation new additional 3% SDLT charge may apply to purchase.