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Where Taxpayers and Advisers Meet

Putting a property into trust but which one ? upside and pitfalls ?

3point14
Posts:44
Joined:Sun May 16, 2010 11:53 pm
Putting a property into trust but which one ? upside and pitfalls ?

Postby 3point14 » Thu Mar 31, 2022 12:22 am

I want to purchase a property for the ultimate benefit of my minor daughter when she reaches an as yet unspecified age but to have that property protected so that no charges could be raised against it or it be sold beforehand. I am unlikely to be around them she reaches that age. I have taken legal advice which was unclear and before going to seek out further legal advice, I would rather better equip myself with some additional knowledge.

I cannot give the property to my daughter's mother as she would sell or charge it and the value would be lost to my daughter. Equally, if she could exert significant influence over my daughter, the property would be lost.

I may also wish my daughter's mother to be able to rent the property for a market or off market rent and I understand that these fees can be passed through the trust tax free to the beneficiaries.

I do not know which sort of trust would be the most suitable and from a tax perspective, does that choice make a difference ? The property would fall on or just over the £325k valuation limit.

Any thoughts most appreciated.

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