Putting your property into a trust while you’re alive can have complex tax and compliance consequences. If you continue living there without paying full market rent, HMRC will usually treat it as a “gift with reservation,” meaning the home is still counted in your estate for inheritance tax (IHT) purposes. Even where full rent is paid, arrangements must be carefully managed and may still be scrutinised; there can also be income tax on rent received by the trustees, reporting requirements (e.g. Trust Registration Service), and other potential charges (including POAT in some scenarios). In short: it can be done, but it needs expert planning.
Handled correctly, Lifetime Trusts can help avoid sideways disinheritance, reduce probate delays, and preserve control over how (and when) loved ones benefit — for example in blended families or where a beneficiary is vulnerable. As an accredited professional Will writer in Farnborough (Society of Will Writers), fully insured (£2m), DBS checked, and ICO registered (ZB421373), I’ll map your goals, explain suitable trust options, and work with your tax/financial advisers as needed. Ready to explore whether this is right for you? Book your free consultation, use the contact form, or call 01252 415340. I serve Farnborough, Aldershot, Farnham, Basingstoke, and the wider Hampshire/Surrey area.
