Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • QuestionsQuestions
    • By QuestionsQuestions 3rd Jan 18, 10:49 PM
    • 16Posts
    • 1Thanks
    QuestionsQuestions
    Joint trustee and beneficiary of property
    • #1
    • 3rd Jan 18, 10:49 PM
    Joint trustee and beneficiary of property 3rd Jan 18 at 10:49 PM
    4 Years ago the family house was put into a trust split between 3 people with trustees also being beneficiaries.
    Now the house has been sold and split 4 ways. (one sibling not a trustee receiving an equal share). Will my share be subject to capital gains tax? How does capital gains tax work? Will I need to contact tax office myself or will it be done at source when sale money is distributed?
    Any examples on how capital gains tax works or anybody had the same experience to offer advice would be much appreciated.
Page 1
    • Keep pedalling
    • By Keep pedalling 3rd Jan 18, 11:00 PM
    • 4,349 Posts
    • 4,730 Thanks
    Keep pedalling
    • #2
    • 3rd Jan 18, 11:00 PM
    • #2
    • 3rd Jan 18, 11:00 PM
    What sort of trust?
    • 00ec25
    • By 00ec25 3rd Jan 18, 11:45 PM
    • 5,809 Posts
    • 5,262 Thanks
    00ec25
    • #3
    • 3rd Jan 18, 11:45 PM
    • #3
    • 3rd Jan 18, 11:45 PM
    read the basics :
    https://www.gov.uk/capital-gains-tax

    https://www.gov.uk/trusts-taxes/types-of-trust

    then come back when you have found out more about the trust. A trustee is someone who administers the trust, you can be a beneficiary of a trust without being a trustee of it. Is the 4th person covered by the trust as a beneficiary of it?

    who of the 4 lived in the house and under what terms in relation to the trust (eg: interest in possession?)
    • xylophone
    • By xylophone 4th Jan 18, 3:35 AM
    • 24,074 Posts
    • 14,078 Thanks
    xylophone
    • #4
    • 4th Jan 18, 3:35 AM
    • #4
    • 4th Jan 18, 3:35 AM
    Who was the settlor of the Trust?

    What kind of Trust was created?

    There were four beneficiaries of the Trust, three of whom were also Trustees?

    Was the house the only asset of the Trust?

    Was the house occupied by any of the beneficiaries as a principal private residence?
    • QuestionsQuestions
    • By QuestionsQuestions 4th Jan 18, 8:25 PM
    • 16 Posts
    • 1 Thanks
    QuestionsQuestions
    • #5
    • 4th Jan 18, 8:25 PM
    • #5
    • 4th Jan 18, 8:25 PM
    Thanks so far.

    It is a discretionary trust. The house was the only asset and none of the trustees have lived in the property. All 3 siblings are trustees and beneficiaries but the paperwork for the 4th sibling was overlooked at the time of creating the trust but in the interest of fairness will be given a 1/4 of the share of the sale value (even though they are not listed as either trustee or beneficiary) approx which is approx 250k.
    Thanks again this is all new for me.
    • xylophone
    • By xylophone 4th Jan 18, 11:13 PM
    • 24,074 Posts
    • 14,078 Thanks
    xylophone
    • #6
    • 4th Jan 18, 11:13 PM
    • #6
    • 4th Jan 18, 11:13 PM
    There has been a capital gain on the sale of the sole asset of the discretionary trust?

    The Trust will be terminated?

    http://communities.lawsociety.org.uk/private-client/ps-magazine/february-2017/wind-it-up/5060457.fullarticle

    https://www.gov.uk/government/publications/trusts-and-capital-gains-tax-hs294-self-assessment-helpsheet/trusts-and-capital-gains-tax-hs294-self-assessment-helpsheet

    In effect, each beneficiary is going to make a gift of a portion of his share to the fourth sibling?

    http://justwillsandlegalservices.co.uk/latest-news/the-7-year-rule-inheritance-tax-and-lifetime-gifts/

    Take professional advice.
    • kidmugsy
    • By kidmugsy 5th Jan 18, 12:21 AM
    • 9,985 Posts
    • 6,741 Thanks
    kidmugsy
    • #7
    • 5th Jan 18, 12:21 AM
    • #7
    • 5th Jan 18, 12:21 AM
    My compliments to you three for wishing to treat your fourth sibling generously. As x says, see a solicitor who specialises in this sort of thing.
    Free the dunston one next time too.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

16Posts Today

5,156Users online

Martin's Twitter