House as a gift..

kingstreet

pjjafc wrote: »

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!

Professional estate planning advice needed for the grandparents, methinks...

Confirmed.

DCFC79

duchy wrote: »

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.

apologies, its just what ive heard and wasnt aware it was tax avoidance but i can see how it is so.

getmore4less

pjjafc wrote: »

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!

Not really

They need to give away around £550k with no reservations.

If income/cash poor then part selling/gifting the assets(to you) effectivaly gives them the rent in advance. also gives them more liquidity to make other arrangments to get the total down.

Fork out for some family estate planning before it is too late.

pjjafc

getmore4less wrote: »

Not really

They need to give away around £550k with no reservations.

If income/cash poor then part selling/gifting the assets(to you) effectivaly gives them the rent in advance. also gives them more liquidity to make other arrangments to get the total down.

Fork out for some family estate planning before it is too late.

Thanks. Seems like the logical thing to do!

I will investigate..

holly_hobby

All gifts (made without reservation i.e the Donor continuing to enjoy benefit and exc charaties) are PETS, apart from the annual 3k gift allowance, which if unused may be rolled over to the next yr only. Gifts on marriage, and and other small unlimited gifts to differing individuals of £250 per person, per fiscal yr.

Gifting 500k+ to family, etc (even without reservation), will obviously still have IHT/PET implications if the Doner becomes the deceased within 7 yrs of the donation. (albeit provision may be made by effecting a gift inter vivos policy - on either own life (in trust of course) or on life of another if effected by the Donee on the life of the Donor) .

Gifting and continuing to receive or enjoy any benefit from the donation, takes the gift out of traditional PET regs - and makes it a gift with reservation.

Its vital to make full use of annual IHT gift reliefs, discretionary trust provision and IHT payment provision for any potentially remaining estate duties (typical provision is a WOL or LTA written in trust, until min LA age of 105), - inc the consideration and full use of any unused married couple IHT allowances between surviving married owners, as has already been touched on.

There are also PET issues if the OP buys it at below market value, plus stamp duty, poss CGT liablitiy for the owner (dependant upon the period elapsed between their vacation of the property and disposal - which if within a 3 yr period is nil liability).

The OP as already suggested, urgently needs to seek thorough estate & IHT planning advice from a suitably qualified practitioner - but at least this thread will give them idea of whats involved and the implications of their current arrangement.

Hope this helps

Holly

brightonman123

why not get it signed over, and then 'treat' her with help towards bills- heating, food etc..?

i think there is a minimum time limit, before gift is free and clear of any tax etc, if gran pops it!