Advice-Joint names or tenant in common

Sandie11

Hi

My husband has inherited 50% of a property in which we as a married couple are going to buy out the other 50%, we then intend to rent the property. I am a higher rate tax payer whereas my husband is basic rate.

Advice needed re below:

Put the house in joint names or tenants in common

Create a deed of trust to declare that I will have 1% of the income and my husband 99%

What happens if we split (not going to happen but never say never) as deed showing i have 1%, does this mean thats all i will get.

All advice appreciated

Thanks

Sandie11

Please can anyone help?

paddy's_mum

If you are shown on the deeds as owning only 1% then yes, that is what you own, irrespective of your higher earnings or his lesser tax obligations. The deeds define it, full stop.

If you are a married couple, contributing equally in all things, why not own it 50/50? You will own one quarter in your own right in any case by virtue of the two of you buying the remaining 50%. If one views the inherited portion as a matrimonial asset (which a court would almost certainly view it as if you ever should divorce) then you already 'own' half of his half, if you see what I mean.

To avoid any possible shenanigans, from either of you, way down the line, I'd always go for tenants in common. There's no room for he-said-she-said and misunderstandings later.

You need legal advice from a solicitor competent in this area.

Sandie11

Hi

My concern is paying the tax if we owned it jointly, in my case I would pay 40% tax of half the income, my husband the basic rate.

Thanks

paddy's_mum

Can't offer any other advice then as tax is not my subject! Hopefully someone who is knowledgeable will be along shortly. Good luck.