Gifting problems (big problems!)

Person_one

meritaten wrote: »

er, no - it IS gifted because you have to sign a 'Deed of Gift'. I just did that myself, because I 'gifted' my share of my mothers house to my son. So that legally, I cannot say in future it was a loan or expect any recompense.

but generally speaking you would be correct. one does 'give' a gift.

Gift is a noun, give is a verb. You can give a gift, you don't gift a gift, you gave your share to your son, even if the badly written paperwork says you 'gifted' it!

I realise it's in common usage now, but it's still really annoying!

onlyroz

Didn't think half term was for another week...

meritaten

onlyroz wrote: »

Didn't think half term was for another week...

oh right - bored schoolkid posts about gifting house!!!!! I don't think so onlyroz.

redpete

Dkeates wrote: »

They have been paying for about 14 months a rent that we don't consider market value (£1000 vice £1200-1400 as per estate agent estimates)
...
Now they are saying they want the girls to pay for all these jobs [drive, ceilings, carpets] and no of them had been putting away sufficient savings to cover it all.

I think you are saying that the three daughters have frittered away £14000 that they have received over and above their 'normal' income. That's a shame because it would have covered most of the work that apparently needs doing.

Pixie5740

This sounds like a DIY attempt at avoiding IHT.

The daughters should have been declaring income tax on the rental income. If the daughters sign the property back to their parents then yes CGT will be payable as I assume the property is not the main or only residence of the daughters. Each daughter does have a CGT allowance but if the property has increased in value by £80k since they became owners then that will take them above the threshold. CGT is based on market value so it doesn't matter if the daughters give away the property for nothing, CGT will still be due.

Cloudydaze

Person_one wrote: »

Gift is a noun, give is a verb. You can give a gift, you don't gift a gift, you gave your share to your son, even if the badly written paperwork says you 'gifted' it!

I realise it's in common usage now, but it's still really annoying!

Even though it's common, I still cringe when ever I see it. It's almost as bad as using 'parent' as a verb!

Pollycat

Dkeates wrote: »

Okay here's a complex situation I'll try to keep simple!
My mother and father in law gifted their house to their three daughters and said they didn't expect the girls to pay for several old jobs that needed doing around the house (half finished drive, ceilings coming down, shower leak, new carpets throughout etc). They have been paying for about 14 months a rent that we don't consider market value (£1000 vice £1200-1400 as per estate agent estimates) so have felt for some time they are still benefitting from the house and therefore not acheiving what they wanted which was to get their total estate below the IHT threshold.
Now they are saying they want the girls to pay for all these jobs and no of them had been putting away sufficient savings to cover it all.
It has caused lots of grief and the girls decided they should just give the house back.

I'm assuming - in the absence of confirmation either way - that it's the parents living in the house.
It might just be me but why are the parents worrying about getting below the IHT threshold when the house is in such a state?

Dkeates wrote: »

That is going to get complicated I'm sure but how do we go about it, is there capital gains for them to pay (the property has increased in value substantially, about £80k but they won't actually see the capital as they are giving it back).
Help in this unique situation would be appreciated. We don't want to fall out and want to keep it simple and amicable.

I'm not up to date with house prices but is it likely that a house described by the OP has increased in value by £80k in 14 months?

Does anyone else think the post is strangely worded?
The OP seems to be posting in the 3rd party but as she is the daughter surely she is one of the 3 girls?

Dkeates wrote: »

My mother and father in law gifted their house to their three daughters

Is this ^^^^ a strange relationship?
I'd have expected Mother & Father, not FIL.

Or maybe I'm just up too early and don't understand the issue.

Madmel

I read it as the OP was the husband/partner of one of the 3 daughters. The parents gave away their house, but remained in it, paying a below-market rent.

Happy to be corrected...

antrobus

Pollycat wrote: »

..... Is this ^^^^ a strange relationship? I'd have expected Mother & Father, not FIL.

Or maybe I'm just up too early and don't understand the issue.

I expect that when the OP refers to their "mother and father in law", the 'in law' bit applies to both the mother and the father.

Pollycat

antrobus wrote: »

I expect that when the OP refers to their "mother and father in law", the 'in law' bit applies to both the mother and the father.

Hah!
I'm with you now.

I was reading it too literally when the OP wrote 'mother and father in law' he meant MIL & FIL.

I am up too early. :rotfl: