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?
- Dress code 38 3
- directors control and tax problems 116 4
- Bulk Invoicing 163 6
- not self employed since March 2011 now received a penalty for late tax return for year 2012-13 191 5
- What would you do in this situation? 511 12
- Travel and Substinance expenses while abroad 138 3
- Help Required 289 6
- Self Employed Self Assessment: Capital Allowance and Car Lease/HP 228 2
- What quality paper do you use for correspondence? 408 14
- What's in a name ? 257 4
- ATED Penalties 267 1
- late second payment on account 161 2
- US royalties 87 2
- Project being run jointly 133 2
- Reclaiming overpaid employer NI contributions 179 2
- Straightforward email correspondence or PDF letter attached to blank email? 196 3
- Sole trader mix up 298 4
- Vat on 'pig slurry' - palatable subject I know! 743 6
- FILING COMPANY ACCOUNTS 900 27
- Staff accommodation without a rental value or RV 211 4
- CTA study material 701
- Anyone have clients that use Pay4Later to offer customers credit? 424
- Employment related securities question 266
- AIM Stocks and IHT 245
- Tax Relief for overseas employees 198
- Trust for Employee 186
- Expat pension contributions? 184
- Raiders of the Lost Tax File 164
- Quickbooks losing VAT return data 157
- IPP (International Pension Plan) income 118