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Deed of variation / gift

Mimi_Arc_en_ciel
Posts: 4,842 Forumite


I've no idea where to put this:
My nana passed away, leaving no will. My dad has inherited everything. He wants me to have the family home - its out of probate (I've already moved into it!)
Now- the solicitor has sent paper work which is for "gifting" a property.
I remember a while ago on here someone said a "Deed of variation" would be better.
Can someone explain?
My nana passed away, leaving no will. My dad has inherited everything. He wants me to have the family home - its out of probate (I've already moved into it!)
Now- the solicitor has sent paper work which is for "gifting" a property.
I remember a while ago on here someone said a "Deed of variation" would be better.
Can someone explain?
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Comments
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Thanks for the reply
I'm guessing since there was no will left then there cannot be a variation then?0 -
Was you grandmother's estate over the Inheritance Tax threshold? Did she pay IT?
Do your father's assets take him over the Inheritance Tax threshold? Will he pay IT?
If IT has already be paid by your grandmother's estate, ad then the property is 'gifted' to you by your father after he inherits, AND he then dies within 7 years, the property will be included in his Estate and IT will be paid for a 2nd time.
However, if instead of your father inhriting, and then giging away, the property, a Deed of Variation is set up, the property will be passed directly to you from your grandmother's Estate, ad IT will only be paid by her estate and not your father's as well.
Note: It's called a 'Deed of Family Arrangement'.0 -
Mimi_Arc_en_ciel wrote: »I'm guessing since there was no will left then there cannot be a variation then?0
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Mimi_Arc_en_ciel wrote: »I've no idea where to put this:
My nana passed away, leaving no will. My dad has inherited everything. He wants me to have the family home - its out of probate (I've already moved into it!)
Now- the solicitor has sent paper work which is for "gifting" a property.
I remember a while ago on here someone said a "Deed of variation" would be better.
Can someone explain?
a brief idea of the circumstances may be useful and the amounts involved.
but yes, you can do a deed of variation (or equivalent ) even if there is no will.
http://www.hmrc.gov.uk/cto/customerguide/page21.htm
the advantage of a variation rather than a gift, would be that the variation is outside your father estate, whereas if your father gives the house to you and he dies within 7 years then it will be included in his estate and subject to IHT rules.0 -
As far as I know my nan was under the threshold of IHT and so is my dad.
I had a very brief chat with a solicitor last night and they said that it should be ok being "gifted" but that theres now some confusion because the house was valued really low but now I've done it up it has increased in value and that there may be issues with it but that's something my dad needs to talk to his solicitor about.
Its all rather confusing! I think my dad just wanted to be able to say "here, its yours"!0 -
The issue is when did the gift take effect, there will need to be a CGT assessment.0
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getmore4less wrote: »The issue is when did the gift take effect, there will need to be a CGT assessment.
I guess this is where it gets tricky. I was given the keys to the house when my nana died so started doing it up then
Legally - the house is still in my nanas name until I sign the paperwork (Which I haven't done yet as I had a query on it about gift / variation)0
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