The marital home

A client and his wife (both aged 61) have been advised by their family solicitors to place the marital home (valued at £300 000 with no mortgage) into a trust to avoid possible future care home fees. The two trustees would be the couple's two daughters: one a daughter of both of them and one a step-daughter.

Under the terms of the trust deed he and his wife have the right to continue occupying their marital home for the remainder of both of their natural lives. No rent would be paid and on the death of the last surviving spouse the property will be appointed by the trustees into the estate of the last survivor under the terms of the trust deed.

In my own mind I have a number of concerns and as I am unfamiliar with the practicalities of trust taxation in a situation such...