11:14 AM, 28th September 2021, About A year ago 4
Hi All, My wife and I have a small property portfolio held in an LLP. We are in the process of purchasing a property for our 37-year-old son using the equity from our main home.
As he’s autistic and unable to handle his finances prudently, hence on completion we intend to put this new property into a family Trust together with our main home and the properties in the portfolio. The aim is to give him his own space with the corresponding responsibilities, we’ll see how that works out!
Unfortunately, to avoid our son laying claim to his new home on completion or in the future, thus being in a position to misuse the equity therein, my wife and I have to purchase the property in our own names, which makes it a second property for LTT Wales and higher Council Tax purposes, and paying £8,000+ in LTT instead of the first time buyer rate of around £500. A few questions:
Is there any way to lessen the higher rate LTT burden?
After completion, and placing his property into the family Trust, can the Trust then rent the property to our son so he (or we, as he’s not working) pays the normal Council Tax rate?
Would another option be to include it in the LLP and the LLP rent it to our son, or does that complicate matters even further?
I’m in my 70’s now and trying to get our affairs in order, along with setting up the family Trust we made our wills and appointed our other children as executors.
Any advice or suggestions would be really appreciated. Maybe there are no alternatives, in which case we’ll know we’ve done all we can and are obeying all the rules!
Many thanks for reading.
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