We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
House as a gift..
pjjafc
Posts: 241 Forumite
Hi
Quick question
Could you legally gift someone a property and STILL receive rent from the person you have gifted it to?
*property is my grans who I rent it from but for inheritance tax purposes we are trying to think ahead
Quick question
Could you legally gift someone a property and STILL receive rent from the person you have gifted it to?
*property is my grans who I rent it from but for inheritance tax purposes we are trying to think ahead
0
Comments
-
Why not just put the property in your name,0
-
No -that'd be seen as tax avoidance.
If you are thinking from a point of claiming housing benefit it wouldn't happen -some people have done similar to your idea and made a private
arrangement that the "rentee" gifts money equal to the rent monthly -however from a legal point of view it's madness as if you and your Gran fell out or you lost your income or even if you died before her -she'd be in a very difficult situation.I Would Rather Climb A Mountain Than Crawl Into A Hole
MSE Florida wedding .....no problem0 -
If your gran continues to derive any benefit from the property after she gifts it, she will fall foul of the gift with reservation rules and the gift will be treated as if it hadn't been made.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
-
Have you checked there is a IHT issue.
What are her total assets.
Is there any spouse nil rate band available.
the nill rate band is £325-£650 depending on how much spouse allowence is left.
If the house is worth less than £325k she would have to live the full 7 years to have any effect on IHT.0 -
What's the total value of her estate?Hi, yes thats the idea. However if we wait until she "departs us" we will have to pay 40% on the estate so just thinking ahead but obviously she would still require rent paid to her.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
No -that'd be seen as tax avoidance.
If you are thinking from a point of claiming housing benefit it wouldn't happen -some people have done similar to your idea and made a private
arrangement that the "rentee" gifts money equal to the rent monthly -however from a legal point of view it's madness as if you and your Gran fell out or you lost your income or even if you died before her -she'd be in a very difficult situation.
Hi, didnt even think of housing benefit which isn't something I would do anyway. Just trying to think of a way of not having to pay thousands and thousands of £s away when she passes away to the government if there is something we can do now0 -
0
-
Professional estate planning advice needed for the grandparents, methinks...I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
-
kingstreet wrote: »What's the total value of her estate?
Hi,
The total estate is probably around the £1.2m mark trying to think of a way to get it down the the £650,000 mark!
Sounds like a bit too difficult!0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.6K Banking & Borrowing
- 254.2K Reduce Debt & Boost Income
- 455.1K Spending & Discounts
- 246.7K Work, Benefits & Business
- 603.1K Mortgages, Homes & Bills
- 178.1K Life & Family
- 260.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards