Questions about the Home Preservation Trust

Will it protect my home if I have to go into long term care?

The Home Preservation Trust may avoid the value of your home being included in a local authority means test for residential or domiciliary care.

Generally, the capital value of your home would not be taken into account by your local authority, but the value of rental income after you have vacated your home would be brought into account. You must be aware that intentionally depriving yourself of capital by ANY means (which can include the Home Preservation Trust) can result in your local authority treating you as if you retain the resources you disposed of, and adjusting your entitlement accordingly.

The length of time between establishing a Home Preservation Trust and needing to go into care is a key factor; while there are no strict guidelines, the longer this period is, the less likely it is that intentional deprivation can be proven.

What is the trust's inheritance tax treatment?

The Home Preservation Trust is IHT-neutral; it neither improves, nor worsens your inheritance tax position. If your estate is above the IHT threshold and reducing exposure to this tax is a concern, Family Wealth Preservation Ltd offers several innovative IHT mitigation solutions.

Why not simply give my house to my children?

There are few advantages in doing so - but some real pitfalls if things don't go to plan! Consider what might happen if you fall out with your children, or if they divorce or get into debt. With the Home Preservation Trust you retain control over your home, and avoid the possibility of it being sold from under you as a result of your children's circumstances changing.

Is there anything else I should bear in mind?

As with any important transaction, don't take any action until we have reviewed your circumstances fully and advised you. We do recommend involving your family in the discussions before making any decision to go ahead.