Q. I am approaching retirement age and, in order to avoid probate costs on death, I was considering transferring my house to my daughter. However, I was put off because my daughter's marriage is shaky and I wouldn't want her husband to be able to claim a share in the house when they divorce (which I think is inevitable). Is there any way around this?
A. Your situation is not unusual. Many clients have a similar dilemma with children with drug, alcohol, gambling or financial problems. Obviously parents wouldn't want such children to take a large sum of money or a property if there is a risk that it could be lost to the bookmaker, trustee in bankruptcy or divorcing spouse.
However, it is possible to transfer the house into a Family Protection Trust. This means the assets are in trust for the benefit of the children. However, the trustees (usually Solicitors though you can appoint any trustworthy person) would only release the monies at a time when you would want them to. For example, if your daughter was getting divorced the release of monies could be delayed until the divorce was over.
There are also numerous other benefits to the Trust, including the fact that it can also ring-fencing your assets from Care Home fees.
However, setting up a trust is complex and there are other factors and you will need to take the advice of an expert before proceeding with this.
Be Guided by the Experts.
Should you have a queries regarding a legal matter please contact Keith Swan of Patterson, Glenton & Stracey Solicitors by email at ks@pgslaw.co.uk or by telephone on 0808 231 7043. Patterson, Glenton & Stracey have provided legal advice to the people of South Tyneside for over 125 years. For details of their full range of services and to view previous Gazette articles please log on to www.pgslaw.co.uk.
