Dont want to loose a property i own to pay for care home.

RayWolfe

Baz wrote: »

Easy to preach over the internet isn't it when there's no way of assessing what you would do in the same situation.

What I would or wouldn't do, does not change the situation. My morals may be far worse than yours but that does not change the morals of this case. Is it OK for MPs to fiddle their expenses even if I would?
But you are right in saying there is no way to asses what I would do. However if I make an effort to condemn and you attack me for condemning, then that must say something about our respective positions.

Cook_County

This is full of holes, grandson buysa a property claiming a discount to which he is not entitled. Grandmother lives in the property so has a license to occupy for which she pays no fees to grandson. This is a sham so will be ignored for most purposes. It has produced a rotten result all round. Who advised to set it up in the first place?

Baz_2

No holes, I would seriously advise the original poster to ignore the posters who do not know what they are talking about and consult a professional.

The discount was valid, the Grandmother has no obligation to pay any fees and the legal deed will only be ignored if the terms of the councils care fees policy allows them to go back 9 years, which it won't. The result sees to be exactly what was intended and the grandson will keep the house and the grandmother will have her fees paid for like she would have done if the house had of remained a council house and she had claimed housing benefit for the past 9 years.

There are a lot of Martyrs and do gooders about when it comes to this subject. You do well to ignore them.

siemli

I have let her live there rent free for 9 years, it was intended that she stayed there for the rest of her days but unfortunately that cant be now.
I just need to protect my asset, i spoke to the solicitor who did the deed of trust in 2000, he states he cant advise on tax issues.
I asked him if i should now change the title deeds into my name or just leave it, he could not advise...
So im no further forward.
Eventually i will sell it but for now what should i do???? Leave it as it is as its shown on the will as in trust to me or change the deeds.
Thankyou so much for your relpies.

dzug1

Find another solicitor who can advise.

siemli

Thanks for all of your valid advice.
Just to put the record straight.
My nan never wanted or could not financially buy the property but was very happy for me to buy the falt as an investment for my future in fact she suggested it.
I do not want to avoid tax but i do want the best result for me I.E what is best to do value for money for my investment.
I mean why should i sell a property and the tax man take a huge lump...
Anyhow, i know understand im below the IHT trreshhold but what figure would i be clobbered cap gains or any other tax if i sold it for £100k
Many thanks,
Simon

terryw

siemli wrote: »

Thanks for all of your valid advice.
Just to put the record straight.
My nan never wanted or could not financially buy the property but was very happy for me to buy the falt as an investment for my future in fact she suggested it.
I do not want to avoid tax but i do want the best result for me I.E what is best to do value for money for my investment.
I mean why should i sell a property and the tax man take a huge lump...
Anyhow, i know understand im below the IHT trreshhold but what figure would i be clobbered cap gains or any other tax if i sold it for £100k
Many thanks,
Simon

From memory (and without checking) the rate of CGT was recently altered to 19 per cent on the gain but remember that there is an exemption on the first so much.

Bung capital gains tax into google and you will get a link to the current figures.

terryw

Baz_2

siemli wrote: »

Thanks for all of your valid advice.
Just to put the record straight.
My nan never wanted or could not financially buy the property but was very happy for me to buy the falt as an investment for my future in fact she suggested it.
I do not want to avoid tax but i do want the best result for me I.E what is best to do value for money for my investment.
I mean why should i sell a property and the tax man take a huge lump...
Anyhow, i know understand im below the IHT trreshhold but what figure would i be clobbered cap gains or any other tax if i sold it for £100k
Many thanks,
Simon

How much did you pay for it?

And when did you live in this property as your only property?

ninky_2

siemli wrote: »

I have let her live there rent free for 9 years,.

how incredibly generous of you.

Cook_County

I think you carved out a lease to your nan for life. You probably owed tax on the value of this lease when you entered into the deed of trust.

The lease is incapable of being assigned elsewhere but nan is surrendering the right and you plan on paying her nothing to surrender that right. Nan may have a CGT bill on the disposal of the right.

You owe CGT at 18% on the gain if the property is sold.

Nan is likely to be treated as depriving herself of the asset.

Your solicitor should have been aware of the consequences which is why I asked if he advised you. You need a new solicitor. This will be an expensive set of mistakes to sort out just when nan needs care, not stress.