best way to deal with second peoperty

tightwadess

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Keep_pedalling

Are you an only child? What is the total value of your father's estate? What part of the UK are you in?

tightwadess

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Keep_pedalling

tightwadess wrote: »

No I have estranged siblings (2).
estate is under iht and all passes to mom
Midlands

If the estate is over £250 there will be complications because your mother will not inherit all of it.

So the vital questions are what is the actual value and what part of the UK did your father live in?

tightwadess

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getmore4less

The laws are different in different parts of the UK

https://www.gov.uk/inherits-someone-dies-without-will/y

the total value because
Intestacy - who inherits if someone dies without a will?
The husband, wife or civil partner keeps all the assets (including property), up to £250,000, and all the personal possessions, whatever their value.
The remainder of the estate will be shared as follows:

the husband, wife or civil partner gets an absolute interest in half of the remainder
the other half is then divided equally between the surviving children
If a son or daughter (or other child where the deceased had a parental role) has already died, their children will inherit in their place.

tightwadess

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getmore4less

If it unlikely that you mums estate will exceed exceed the nil rate band then her gifting the house to you is probably going to be the most tax and costs efficient and you can transfer directly to you.

A DOV can eliminate the risk her assets go over in 7 years

if she take ownership then that will expose her to a CGT assessment on disposal.

Any CGT liabilities you accumulate between now and moving in will be diluted by you living there.

tightwadess

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FreeBear

tightwadess wrote: »

So a dov is probably the best course of action but the property needs to be registered first hand in my name and not moms....???
What would happen if mom did not survive the 7 year rule ?

I think a DoV would be best for a number of reasons. It keeps the value of the property out of your mothers estate should she go before the seven years are up. It avoids CGT along with any other charges that may be incurred (not sure if you'd get hit by stamp duty if it was gifted). Doing a DoV would certainly save on Land Registry charges (not sure how much they charge for gifting) - Aside from the transfer of ownership costs, it won't make any difference for the compulsory first registration.

If you are using a solicitor to handle the first registration, they would be able to advise on the best course of action regarding ownership.

tightwadess

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