Tenants in common

seven-day-weekend

I've seen some at over three grand a year!:eek:

Thanks for your good wishes.

Andreg

Having read through this thread and other online advice I have decided to change our house ownership from joint tenancy to tenants-in-common, as well as setting up a discretionary nil-rate-trust in our wills.

The process of changing to tenants-in-common is very simple. One partner sends the other a 'Notice of Severance of Joint Tenancy", both partners sign this notice, and its sent to the land registry along with form RX1.

I can find form RX1 as well as an explanatory booklet on the land registry website, but I am having trouble finding an example of notice of severance of joint tenancy for free anywhere. Call me penny-pinching but I dont want to pay one of the hundreds of online solicitors for what must be a fairly standard and easily understood document.

Can anyone advise me where to find an example notice?

margaretclare

Have a look at this:

http://www.draft-your-will.com/Joint_Tenancy_Severance.htm

Margaret

harryhound

The "Which?" guide called "Giving & Inheriting" (2007 ed.) says a letter from one owner to the other will do and then goes on to say "To make matters doubly clear you might consider drawing up a joint statement that you both sign".

I used the letter route some 15 years ago and got my wife to sign the letter that she had read and understood it.

(BUT I've not died yet, so she has not had an opportunity to challenge the situation;) ).

Harry

AndrewF_3

Very interested reading this thread (the best I found on this topic) ... because I began to realise that whether you go Joint Tenant or Tenant in Common, you can't escape IHT! Nasty shock, as I'm sure the solicitor who drew up my will said Joint Tenant got round this!

I own my own home outright, but am Joint Tenant, with girlfriend, of her home; so great, she gets in when I pop my clogs ... but my share is subject to IHT (and probably CGT as well), so she'd have to sell in order to pay all the tax.

We will be moving her home in the next 12 months (and trading up with money from my late Mum's home), and I'm now planning to buy the new home as Joint Tenants with her ... and my daughter ... on the basis that my daughter's share will be a lifetime gift from me.

I plan to change my will so that any CGT and IHT on this is paid by my estate, so that they both get my share tax-free.

I am 61, in good health.

Any feedback/advice on this plan greatly appreciated ... and I hope I've flagged up the IHT snag correctly for all readers of this thread. I'm sure "Margaret" especially will have useful things to say about this!

AndrewF

PS Sorry if I've broken protocols - couldn't find any way of starting a new thread!

margaretclare

Hello Andrew

You've probably noticed that IHT levels have changed recently, and it appears to be more favourable to be married i.e. not just be boyfriend/girlfriend! Under the new rules, the IHT level is doubled for the last survivor of a married couple.

Not that any of this will affect us, because our estate is hardly likely to reach £300K.

Best wishes anyway!

JsByrne

AndrewF wrote: »

We will be moving her home in the next 12 months (and trading up with money from my late Mum's home), and I'm now planning to buy the new home as Joint Tenants with her ... and my daughter ... on the basis that my daughter's share will be a lifetime gift from me.

Hi Andrew

Be careful with the proposed plan. Purchasing the said property as tenants in common with your daughter as one of the parties will not prevent CGT being due upon sale if your daughter does not live in the property in question.

Best wishes

sdooley

AndrewF wrote: »

Very interested reading this thread (the best I found on this topic) ... because I began to realise that whether you go Joint Tenant or Tenant in Common, you can't escape IHT! Nasty shock, as I'm sure the solicitor who drew up my will said Joint Tenant got round this!

I own my own home outright, but am Joint Tenant, with girlfriend, of her home; so great, she gets in when I pop my clogs ... but my share is subject to IHT (and probably CGT as well), so she'd have to sell in order to pay all the tax.

We will be moving her home in the next 12 months (and trading up with money from my late Mum's home), and I'm now planning to buy the new home as Joint Tenants with her ... and my daughter ... on the basis that my daughter's share will be a lifetime gift from me.

I plan to change my will so that any CGT and IHT on this is paid by my estate, so that they both get my share tax-free.

I am 61, in good health.

Any feedback/advice on this plan greatly appreciated ... and I hope I've flagged up the IHT snag correctly for all readers of this thread. I'm sure "Margaret" especially will have useful things to say about this!

AndrewF

PS Sorry if I've broken protocols - couldn't find any way of starting a new thread!

Andrew: you need to be sure your daughter will never go bankrupt as her creditors could require your house be sold to pay her debts.

sloughflint

margaretclare wrote: »

Under the new rules, the IHT level is doubled for the last survivor of a married couple.

Be careful saying this....
See what I wrote here ( post 2):
http://forums.moneysavingexpert.com/showthread.html?t=896563

AndrewF_3

JsByrne wrote: »

AndrewF wrote: »

We will be moving her home in the next 12 months, and I'm now planning to buy the new home as Joint Tenants with her ... and my daughter ... on the basis that my daughter's share will be a lifetime gift from me.

Hi Andrew

Be careful with the proposed plan. Purchasing the said property as tenants in common with your daughter as one of the parties will not prevent CGT being due upon sale if your daughter does not live in the property in question.

Reply:
Thanks JS - I had appreciated this, (and will get my 'estate' to pay any CGT so beneficiaries are not burdened with it) ... but I am actually now wondering whether as Joint Tenant (as opposed to Tenant in Common, which of course is very different) there would be no CGT liability ... because as Joint Tenant my share becomes 0% on death - 18% of 0 is ... 0!!

Anyone out there got the gen on this?

AndrewF