Family income trusts
There are a number of companies currently trying to persuade couples to set up a family income trust, in order to fund care home fees and minimise inheritance tax.
Further investigation into the claims made by these companies reveals that they often request several thousand pounds (in some cases, up to £14,000) to obtain probate.
Firstly, financial advisors have shed light on the care home issue, stating that putting the family home into trust isn’t always necessary in order to avoid paying expensive care home fees.
With regards to minimising inheritance tax, it is worth remembering that gifts to a spouse are entirely exempt from inheritance tax so leaving your house to them shouldn’t cause any problems. In the event of the death of the remaining spouse, the beneficiaries of the estate will benefit from double the nil rate band, meaning heirs will only need to pay IHT on all assets, if the entire estate is valued over £650,000.
Our advice is to seek out professional help from an estate planner, before you invest your hard earned savings in a scheme which may well not help you in any way but could end up costing you considerably more.