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?
- Taxfiler - SA100 - More efficient? 658 5
- See you all on the other side 703 6
- 12Pay 467 2
- dividends 636 2
- R&D 330 1
- Quarterly Reporting - The Logistics 1,193 17
- Auto enrolment contribution rates 443 3
- How long are you waiting for appeal reply 425 4
- Borrowing money to loan to company 379 1
- Mother as Guarantor for Son's mortgage 551 5
- Seeking a tax case 648 9
- When do we qualify for state pension? 510 4
- Companies house strike off 572 3
- Tax treatment of alterations to property 438 2
- Moving to the cloud 754 9
- Iris open space/doc exchange for SATRs 218 2
- How much to charge for payroll? 911 16
- Unincorporated charity transfer to CIO 219 4
- BTC vs Digita 1,093 29
- Has anyone tried calling HMRC to get tax on dividends put in code? 509 4
- HMRC Joint Filing 563
- Capital Contribution towards a company car 420
- Capital Reduction & Impact on EIS Shares 373
- IRIS and FRS 102 355
- Capitalising Finance Lease 328
- USA help 318
- Marginal rates of tax 307
- National Minimum Wage issue on Directors joining a Workplace Pension 307
- Dormant company accounts under FRS 102 295
- Class 2 NI 284