Protecting assets from care costs?
Client has total assets of c£300k (2 properties, no mortgages) and is in his late 50s. His health is not great and he is concerned that at some point he may need residential care.
He is looking at ways of protecting his assets and possibly transferring them to his grown up son. IHT is obviously not an issue given the estate size but he does need the rental income from the commercial property of approximately £1,000 per month as this is now his only income.
If he gives the assets to the son or transfers them in to trust there would be an immediate CGT charge on the commercial property. He would also need to remain living in the residential property.
Any ideas on the best way to protect the assets from care costs but still retain the rental income?
I am guessing that he would just have to pay the CGT regardless if he is transferring the commercial property as it is simply an investment and has never been a business asset?
- Opt To Tax Refund 184 2
- Divorcing husband, both 50% owners of a Ltd business 71 6
- Is the CT61 return dead? 1,240 14
- Best software for small practice? 520 19
- Paying dividends to Ordinary shares with different nominal values 407 13
- New Shareholder and Purchase of Own Share 156 15
- I am 34 years old, am I too old to start a career in Accounting ? which is the best way to pursue it 62 3
- Anyone having problems with Taxfiler 325 12
- How did you recalculate your payroll fees 1,237 21
- HMRC Enquiry 416 2
- Car purchase Lease or Buy 149 7
- Notifying HMRC when striking off company that never traded 274 4
- What would you do here, potential insolvency. 1,387 16
- Long/Short Period of Account 154 3
- Another HMRC Cock Up 749 7
- Directors' advances and credits 343 1
- HMRC Statements 344 5
- NEST web services & Moneysoft 540 7
- Goodwill on incorporation low level valuations 250 3
- Transfering bank balnces between old and new co. 367 10
- Self employed and HMRC Worldwide Subsistence Rates 763
- Interest paid - do new rules affect Tax Credits? 452
- Market Invoice (P2P invoice discounting) tax treatment 271
- DTA tie-breaker issue 261
- Tax on internet ad sharing income 244
- Credit against UK NI for NI paid to EEC Countries 219
- CGT for NOn UK residents 216
- Apprenticeship Levy 193
- What are the tax implications of overseas sales through a UK based company? 190
- Capital Gains personal representatives 177