Inheriting share of property
Discussion
Myself/sister were left a share of property which my mum currently resides in. We don't want or need to do anything with it (yet) though we may move abroad one day. Is has been suggested to us that we can put it in a trust (for both of us) to minimise future taxes (property is around the 1m mark)? Does this make sense or should we just assume our shares as tenants.
I have nothing to offer as help, but would suggest a cut and paste here....
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https://forum.qandamoney.co.uk/categories
fido said:
Myself/sister were left a share of property which my mum currently resides in. We don't want or need to do anything with it (yet) though we may move abroad one day. Is has been suggested to us that we can put it in a trust (for both of us) to minimise future taxes (property is around the 1m mark)? Does this make sense or should we just assume our shares as tenants.
Get some professional advice, trusts can be a nightmare.As for letting a charity use as suggested, hell no. Anyway it appears to be currently occupied.
FMOB said:
Get some professional advice, trusts can be a nightmare.
Yes, I will be doing that - just find PH useful with insight and examples, generally!Eric Mc said:
Is your mum paying market rent?
It's the half my dad left - he was tenant-in-common with mum so when he passed away it didn't go to my mum (as we assumed). We are deciding on what to do with mum's share - she wants to gift it to us but I explained all the potential issues (like paying market rent etc.).Petrus1983 said:
I can't see a trust being the right idea on a £1m property with your mother inside it. They're a nightmare at the best of times and can't personally see much advantage gained by one when considering costs/time/ charging your mother rent at full market rates etc.
The idea was to put my dad's share into a trust so that we postpone ownership and thus avoid any tax CGT etc. It's my understanding that most wills are done like this i.e. each share of parental property is left as a trust to children.If you do setup a trust, define what fees are payable to whoever is responsible for dissolving the trust. When this happened to a trust I benefited from we got held to ransom by the solicitor whose signature we needed.
The chap was a complete arrogant b
d and unprofessional does no justice to his attitude and antics.
The chap was a complete arrogant b
d and unprofessional does no justice to his attitude and antics.FMOB said:
The chap was a complete arrogant bd and unprofessional does no justice to his attitude and antics.
Good points. Sounds a bit like the solicitors my dad used! I once had some conveyancing done through them years ago and even the estate agent hinted that had a reputation for being rather unhelpful.d and unprofessional does no justice to his attitude and antics.fido said:
It's the half my dad left - he was tenant-in-common with mum so when he passed away it didn't go to my mum (as we assumed). We are deciding on what to do with mum's share - she wants to gift it to us but I explained all the potential issues (like paying market rent etc.).
What does your fathers will say?FMOB said:
Get some professional advice, trusts can be a nightmare.
As for letting a charity use as suggested, hell no. Anyway it appears to be currently occupied.
Sorry, why not, he said he didn't want or need it? I mean setting it up to be used / run by a charity at the appropriate time, not just giving them free access.As for letting a charity use as suggested, hell no. Anyway it appears to be currently occupied.
fido said:
FMOB said:
The chap was a complete arrogant bd and unprofessional does no justice to his attitude and antics.
Good points. Sounds a bit like the solicitors my dad used! I once had some conveyancing done through them years ago and even the estate agent hinted that had a reputation for being rather unhelpful.d and unprofessional does no justice to his attitude and antics.TownIdiot said:
Peterpetrole said:
Sorry, why not, he said he didn't want or need it? I mean setting it up to be used / run by a charity at the appropriate time, not just giving them free access.
As per the OP his mum is living in it.FMOB said:
The only thing that brought a bit of sense to the proceeding was one of the Senior Partners in the firm we used mentioning to him 'extorting a client' amongst other things, still cost several £k's to get his signature but the delay he caused was painful.
Ouch. The more I read into this, better to just assume our respective shares and add some clauses that neither person can force a sale until my mum doesn't need the house anymore(?) I potentially wanted to move to abroad next year and mum would come with me if possible.TownIdiot said:
Under these circumstances why would she need to?
My mum wants to give her share to us i.e. between myself and sister - it is my understanding that market rent arises in that situation.Get some proper advice. I mean, definitely get some proper, paid for advice.
One thing you might want to think about is varying the will, so that the share you've got actually goes to your Mother. Assuming you're all on good terms, and she's not barking mad and planning to leave her entire estate to the cat, then it really doesn't change much. As well as inheriting the other 1/2 of the house, she inherits your father's IHT allowances, so she will be able to leave an estate of £1million to direct offspring without any IHT being payable as long as it includes the family home. The wrinkle that I really haven't looked into is the whole care home fees thing - that's why you need proper, professional advice.
One thing you might want to think about is varying the will, so that the share you've got actually goes to your Mother. Assuming you're all on good terms, and she's not barking mad and planning to leave her entire estate to the cat, then it really doesn't change much. As well as inheriting the other 1/2 of the house, she inherits your father's IHT allowances, so she will be able to leave an estate of £1million to direct offspring without any IHT being payable as long as it includes the family home. The wrinkle that I really haven't looked into is the whole care home fees thing - that's why you need proper, professional advice.
fido said:
FMOB said:
The only thing that brought a bit of sense to the proceeding was one of the Senior Partners in the firm we used mentioning to him 'extorting a client' amongst other things, still cost several £k's to get his signature but the delay he caused was painful.
Ouch. The more I read into this, better to just assume our respective shares and add some clauses that neither person can force a sale until my mum doesn't need the house anymore(?) I potentially wanted to move to abroad next year and mum would come with me if possible.TownIdiot said:
Under these circumstances why would she need to?
My mum wants to give her share to us i.e. between myself and sister - it is my understanding that market rent arises in that situation.omniflow said:
One thing you might want to think about is varying the will, so that the share you've got actually goes to your Mother. Assuming you're all on good terms, and she's not barking mad and planning to leave her entire estate to the cat, then it really doesn't change much. As well as inheriting the other 1/2 of the house, she inherits your father's IHT allowances, so she will be able to leave an estate of £1million to direct offspring without any IHT being payable as long as it includes the family home. The wrinkle that I really haven't looked into is the whole care home fees thing - that's why you need proper, professional advice.
This is why a family friend suggested the trust thing i.e. put our share into a trust so that the IHT allowance is over the whole £1m, but also mitigates the care home fees part. She isn't barking mad but leaves all financial / admin stuff to myself! It's f*g grim paying too loads of Council Tax every month .. 
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