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Inheritance or gift as deposit
LuckyG
Posts: 226 Forumite
Hello everyone, I'm new to this site.
A few months ago my husbands dad passed away, he was a home owner but the deeds are in my husbands sisters name. She is having the funds from the sale of the house transferred into a trustee account and will divide it between 4 (as they have 2 other brothers) once the sale of the house is completed.
We are planning on using our share on a deposit for a house (FTB), we also already have £5000 personal savings, some of which is in HTB isa with Nationwide. In total we should have approximately £40,000 but only £5000 would have been saved ourselves.
My question is, when stating where a our deposit has originated from, what do we call the amount from the sale of his dads house? Would it be inheritance or a gift from his sister.
Thank you
A few months ago my husbands dad passed away, he was a home owner but the deeds are in my husbands sisters name. She is having the funds from the sale of the house transferred into a trustee account and will divide it between 4 (as they have 2 other brothers) once the sale of the house is completed.
We are planning on using our share on a deposit for a house (FTB), we also already have £5000 personal savings, some of which is in HTB isa with Nationwide. In total we should have approximately £40,000 but only £5000 would have been saved ourselves.
My question is, when stating where a our deposit has originated from, what do we call the amount from the sale of his dads house? Would it be inheritance or a gift from his sister.
Thank you
0
Comments
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Why was house in sisters name and why is she giving you this money ?0
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it's a gift0
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The house has been in his sisters name for over 20 years so I can't really answer that with certainty.
She's giving us the money as she believes it's the fair thing to do considering she was not their only child.0 -
did she live there?
If not could be a tasty CGT bill unless the parent(s) had a life interest.0 -
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Sorry, I made a mistake. Her name as well as their parents names are on the deeds. Does this make a difference0
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Sorry, I made a mistake. Her name as well as their parents names are on the deeds. Does this make a difference
It does make things complicated. Did she actually live in it at any time she owned a share in it? If not then she is likely to owe capital gains tax which she will need to factor in. The gift to her would also not take any part of the value of the house out of the estate for inheritance tax purposes as it would have been classed as a gift with reservation, but that is only an issue if the total estate exceeded the nil rate band.
She does need to clarify both hers and the estates tax position before she distributes anything.0
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