best way to deal with second peoperty

[Deleted User]

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[Deleted User]

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getmore4less

Keep_pedalling wrote: »

They won't have any say in what she does with her own property, but a DoV will mean the second house will never be hers, and your siblings could create trouble which is likely to be expensive for all concerned. As there is no tax advantage in going down the DoV route, keep it simple and avoid any potencial agro by sticking to intestate distribution rules with your mum gifting you the other house after distribution.

A DOV is really just a gift from a beneficiary with potential tax benefits.

no one else has a say not even the executor of an estate unless it has an increased IHT impact on the current estate.

there is nothing the siblings can do about it.

[Deleted User]

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getmore4less

I am now going to confuse you even more as I forgot an essential and quite significant aspect of the gift/DOV options(and no one picked up on it).

If the property is gifted using DOV one side effect is that the property no longer gets the IHT spouse exemption so is added to the total that uses up dads nil rate band.

That means mums nil rate band will be smaller as there will be less to transfer.

This makes the straight gift less of an issue as it is probably tax neutral for the 7 years anyway.

having said that this only matters if there will be IHT in the future and from what you have been saying this may be unlikely unless mum already has significant assets of her own.

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Yorkshireman99

[quote=[Deleted User];71531717]Thank-you yes it's confusing but I think I can grasp what you mean ...so what value would be used on the property if mom passes in those 7 years value as DOD of dad or value at moms passing. I only ask because if it's the latter it could complicate things as we are obviously going to be spending money and time renovating it and thus probably increase its value ?[/QUOTE]
You need to get paid for professional advice to make sure that you don't get caught out. A few hundred pounds should make sure that you save much more. Advice on here is a good guide but no substitute for the real thing.

[Deleted User]

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Yorkshireman99

[quote=[Deleted User];71532373]Thanks Yorkshireman we do have paid for professional advise I.e the solicitor dealing with my dad's estate I was just trying to understand all the legal implications / actions in lay man's terms as my solicitor uses mostly legal jargon and sometimes we get a bit lost in it all. If I understand what I am talking about then agreeing with what the solicitor says makes it easier all round .[/QUOTE]
Unless the solicitor is a specialist in IHT planning and trusts they may not have the required expertise. You might want to ask a STEP member for advice.

[Deleted User]

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