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?
- Accountancy practices - are you closed over Christmas or do you let your staff take it off? 960 29
- You know its over 348 4
- HMRC BACK AND FORTH FIGHT ON BTL PROPERTY ALLOWANCES 494 9
- How do you find shareholders of a Cyprus Company ? 224 13
- Valuing my fast-growing internet business for transfer of goodwill on incorporation 178 2
- HMRC won't let me set up online DD for PAYE 164 2
- What is the amount of dividends received as a shareholder that requires registration for self assessment? 255 3
- Cocaine anyone? 517 8
- Late Registration for VAT 493 13
- EIS/SEIS 149 1
- Amortisation of Goodwill 279 1
- TaxCalc Accounts production 420 5
- Depression - HMRC penalties case won because of this illness. 427 12
- Solicitors now, Accountants next 724 10
- How come if you claim benefits you are not entitled to you either have to pay a 50% penalty or are sent to court and either fined or sent to prison (sometimes suspended) and end up with a criminal record. 558 10
- ACCA - still making me laugh 593 4
- Personal pension 403 9
- Legal Aid Agency claims and VAT 223 1
- How much of your work is admin? 1,221 11
- Petrol expenses for self-employed 178 3
- Hive up 492
- Accounting referance change & deficient accounts. 459
- corporate hierarchy 440
- Advice - 273
- Anyone had HMRC refusing to act on EPS database glitch? 227
- WWOOFers 218
- Co. limited by Guarantee now closed 209
- Art Gallery - Splitting a property between business and personal use 203
- Tax liabilities in USA for warehoused products 183
- Mutual Trading - Exempt CT Income - Do I need clearance? 176