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Property in Trust?

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Author Topic: Property in Trust?  (Read 117 times)
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« on: January 17, 2022, 02:59:45 PM »

I live in a building which has four separate addresses. I own 3 of them and my neighbour owns 1. We are all Leaseholders. We have a share of the Freehold. The Freehold is owned by a Company set up for us, where we are Directors. We are equal as Leaseholders. We are equal as Directors. I have 3 shares in the Company. He has 1 share.

My neighbour came to me the other day and asked me for some advice. He and his wife are pensioners, quite old, and they've recently employed a Financial Advisor who has been coming around to visit them every couple of weeks to go through things like their Will and all that stuff.

My neighbour says the Financial Advisor has recommended to them that they put their property into a Trust. He reckons this will save them "some money" if they ever have to go into a Care Home. This Financial Advisor was asking my neighbour all about whether the property was Freehold or what, and he had come to ask me whether I would have a chat with the Financial Advisor (not because I'm in any way senior - just because he thinks I know more about things like this - which I really don't). Apparently the Financial Advisor was telling him he needed some kind of certificate to put his property into Trust.

We sat down and chatted this through - I told him that I'd seen on the news recently that I thought this problem (of people needing to sell their home to cover care costs) was going to be a thing of the past soon. I said I did think people are moaning about people in cheaper properties (generally up North) not getting as good a deal as those in more expensive properties, but I still thought things were better than they had been and I'd need to realise some pretty big savings to consider putting my property into a Trust. I also asked him what on earth happens if they do go into a care home - is the property left empty or does someone get to 'inherit' it before they pass on? He didn't know the answers and re-iterated that I might discuss it with the Financial Advisor.

I said I was very reluctant to do so... not because I didn't want to help, but I'd explained the Leasehold with a share of Freehold situation to him and confirmed that we are both Directors of the Company - so I saw no reason why I needed to be involved in his private financial affairs - whatever I could do as a Leaseholder / Director in relation to a needed certificate, he could also so.

He was happy with that, and said he would try to explain it to the Financial Advisor... but I didn't let him go before pressing him on what these savings were. He says the Financial Advisor has told him that by doing this he could save them 200!

I asked - what? 200 every month? 200 every year? And he said no, just 200 as a one-off. So I said to him - why even bother when you're talking about jumping through hoops to put your property into a Trust, which surely complicates matters, for the sake of 200?

He agreed.

After he spoke to the Financial Advisor he asked me one more time if I would have a chat with him... so either he or I could "explain things" and, again, I demurred and reiterated that he could do anything I could do as a Leaseholder / Director.

Now... fast forward to last night... I was having a bubble bath (get that image out of your head!) and I could not stop thinking about that advert on TV where a Pension Advisor was seen laughing and cavorting around on a jet-ski... where some old fella was sat on a couch in a small dreary living room saying - "he took it all"... I haven't met the Financial Advisor or spoken to him (yet) but I have the feeling my neighbour is being persistently persuaded to arrange to put his property into Trust.

And as I don't understand this... I am wondering if there is risk to him?

Any thoughts?

And about me... what would you do? What would Jesus do?

Lots to read there, I know. Sorry.
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