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?
- Accrued salary unpaid 205 4
- Generic notification message 215 4
- Mortgage Adviser's request 293 7
- Where do Balance Sheet Gains get recognised in CT600? 757 37
- P60 from HMRC Basic Paye Tools 4,122 18
- Basis periods 39 1
- P&L Treatment of property assets 64 2
- CGT on spouse's death 276 11
- Tax relief for networking day out? 465 12
- VAT on non-denominated postage 67 2
- Starting Again 274 11
- Is cloud accounting software all just pie in the sky 636 19
- CT101 Completion 134 1
- Non resident pension withdrawal 149 2
- P11D Software 780 9
- PAYE Dashboard inconsistency 204 4
- Why can't I paste into AccountingWeb? 271 5
- Can shareholders lend to their company at interest? 395 10
- Payroll software 191 4
- Company UTR numbers 309 6
- Construction CIS LLP Company 597
- Services via intermediaries and new HMRC reporting requirements 582
- LIVE: Budget aftermath webinar 382
- Pensions Regulator 349
- NIC contribution on unremitted income 285
- Using the correct forms 263
- SA penalty proposals 252
- RTI - duplicate employee record 244
- Accelerated payment notices 230
- How hard is it to reduce a code? 216