share properties after death?

jebervic

I am married and own my own my own property and my wife owns her own, we have both been married 2nd time around and have children from both relationships, we are planning leaving to leave our own houses to our children, so my house will go to all my children and her house to her children...........

We were wondering if it's possible to leave the properties as stated but leave mutual agreements to allow each other to live/use both until they die, i.e my wife could use my property to until she dies and then it goes to my children.

Is this possible?

Yorkshireman99

Easy for a solicitor, not a will writer to do. Discuss the dfetails with tem including the IHT and CGT imolications.

Keep_pedalling

Possible but why would you do it? You can't reside in both properties.

Keep_pedalling

Have you considered the IHT implications of your current set up? Presumably one of these properties is your primary residence which, if the houses are worth more than £325k, would mean one of your estates would get the primary residence nil rate relief and the other would not.

So for example if, as a married couple your primary residence is the house your wife owns and you die first your estate would have an IHT liability on everything you leave your children over £325k. If your wife was the first to die then should would also be able to use her primary residence nil rate band as well meaning she could leave a house worth up to £500k to her children without any IHT issues.

The above assumes you were divorced rather than widowed.

jebervic

We have split our assets to make it easier in death, my wife wants her property to go to her children from her first marriage and our marriage and I want to do the same.

We have properties in two different parts of the country. Mine is near London and my wife’s property is at the coast in Cornwall, so we have a perfect blend of City and relaxation at the coast in Cornwall.

This works for us, but we just want to protect our lifestyle and protect where our assets go after death.

Yorkshireman99

As KP says it is potentially costly. That is why you both need to get paid ffor professional advice from an IHT specialist. In any case there are also potential CGT issues because one of the proerties will not be your primary residence.

Keep_pedalling

I don't think you have really thought this through properly if you think this simplifies things. Apart from the tax issue, you would each be treated differently for funding if either of you needed residencial care.

I too think you should take professional advice.

Mojisola

jebervic wrote: »

We have properties in two different parts of the country. Mine is near London and my wife’s property is at the coast in Cornwall, so we have a perfect blend of City and relaxation at the coast in Cornwall.

Keep_pedalling wrote: »

I don't think you have really thought this through properly if you think this simplifies things. Apart from the tax issue, you would each be treated differently for funding if either of you needed residencial care.

I too think you should take professional advice.

I agree. Presumably the London property is your main residence.

Despite the fact that you own it, if you had to go into care it would not be counted in the financial assessment.

If your wife had to go into a care home, her property would be counted and may have to be sold.

Yorkshireman99

Mojisola wrote: »

I agree. Presumably the London property is your main residence.

Despite the fact that you own it, if you had to go into care it would not be counted in the financial assessment.

If your wife had to go into a care home, her property would be counted and may have to be sold.

Also it is unlikely that HMR&C will accept a couple to nominate sepearate properties as their primary residence and in fact you have said that the Cornish house is not. Hence the CGT becomes an issue. Even more reason to get paid for advice from a tax specialist as well as a solicitor.

getmore4less

Fairly standard will based life interest trust will do what you want.
If both houses still there when you are both dead no CGT just IHT.
Depending on the size of the joint estate the IHT could be an issue if there are insufficient funds to cover any bill.


before you both die should you need to change/liquidate either property as this may change how you want to distribute the asset base and can throw up CGT issues.

Keep_pedalling

getmore4less wrote: »

Fairly standard will based life interest trust will do what you want.
If both houses still there when you are both dead no CGT just IHT.
Depending on the size of the joint estate the IHT could be an issue if there are insufficient funds to cover any bill.


before you both die should you need to change/liquidate either property as this may change how you want to distribute the asset base and can throw up CGT issues.

It's not just the size of the joint estate, but the individual ones, as they are both planning to leave major assets to their children, if both properties are over the nil rate band then that will be used up on the first death. Which is likely to effect one set of beneficiaries more than the other.