Gift Money to siblings to help buy property

saajan_12

bearsearch wrote: »

I suppose one other option would be for my son to take, say, a 25% share of my daughters property I.e. Put it in shared names. I'm aware of potential capital gains tax if his share of the property goes up in value by more than £11k a year. Not sure what other implications there would be with this, given this would be a second property for my son. e.g does it affect stamp duty on the purchase ? Any other implications?

I'm aware it would then be down to my son as to when he wants his share back but we could agree an approach to that depending on different circumstances.

NOOOOO BAD IDEA!
A house is a very illiquid, indivisible thing to own, so sharing ownership between people who may want to do different things in life will only invite friction.
-> what if son needs to liquidate investment? Either daughter is forced out of her home and incurs or son can't access his capital which may stop him moving on in life / affording things if he loses an income etc. Yes, he'd be in the same position if he never got the gift, but once it's his it'll feel a lot harsher.
-> What if daughter wants to make changes to the house? Son may not agree / afford his 25% contribution but would get the resultant increase in value.
-> What if daughter can't afford mortgage / falls behind? Son would likely be on the mortgage too as a part owner and so be jointly liable for the payments

Also more immediate, defined effects
* Higher rate stamp duty on the whole purchase price (as son own's elsewhere)
* Capital gains tax on son's share when sold

Don't make things too complicated, either
a. give her half and you/son loan her half the money, or
b. gift it all without expecting it back, or
c. just give her half and she needs to lower her expectations.
There aren't a whole load of other options.. daughter can't afford the property she's looking at.

Sea_Shell

If your son is on board. Gift them 50/50 each, and then if he still wants to give/loan the money to his sister, then that's his decision. You've then 'done your bit'.

Sea_Shell

bouicca21 wrote: »

I have two children in a similar positon - one was able to buy before prices took off, the other wasn't and so has been left behind. I'll happily gift money to the younger one - and if it doesn't look fair, then I'll sort it out via my will.

What if you live to 100! Or out live them. One will have had the benefit of the gift and the other never gets the chance to.

Mojisola

bouicca21 wrote: »

I have two children in a similar positon - one was able to buy before prices took off, the other wasn't and so has been left behind. I'll happily gift money to the younger one - and if it doesn't look fair, then I'll sort it out via my will.

Sea_Shell wrote: »

What if you live to 100! Or out live them. One will have had the benefit of the gift and the other never gets the chance to.

I know sisters where this was done - one was given a substantial amount of money during Mum's lifetime; other one received the bulk of the inheritance to 'even things up'.

Mum went into care, house was sold and almost everything went on her care. The sister who had benefited from Mum's money for years said "Tough" to her sister and they've never spoken since.

pjcox2005

Just gift it to your daughter and if you or potentially your daughter have money at a later date then do something nice for your son.


As an adult, any help either me or my sibling receive from a parent is appreciated, but not necessary and certainly doesn't have to be the same. Needs and ability to help fluctuate so it's a shame to waste an opportunity to help just because you need to equalise it.

Red-Squirrel_2

pjcox2005 wrote: »

Just gift it to your daughter and if you or potential your daughter have money then do something nice for your son.


As an adult, any help either me or my sibling receive from a parent is appreciated, but not necessary and certainly doesn't have to be the same. Needs and ability to help fluctuate so it's a shame to waste an opportunity to help just because you need to equalise it.

Exactly.

My parents do a fair bit of babysitting for my brother's kids. Should I demand that they spend the same amount of their time doing something that benefits me even though I don't have any kids myself?

If I was well off and my brother wasn't (its the other way round in reality :rotfl:) I wouldn't begrudge them helping him out.

Fair doesn't always mean exactly the same.

Cakeguts

Mojisola wrote: »

I know sisters where this was done - one was given a substantial amount of money during Mum's lifetime; other one received the bulk of the inheritance to 'even things up'.

Mum went into care, house was sold and almost everything went on her care. The sister who had benefited from Mum's money for years said "Tough" to her sister and they've never spoken since.

This is just the problem. Plus parents say that x in on side and that it was their idea but this doesn't mean that the child who is losing out is happy about the situation. The problem is that we don't know what the conversation was that led up to the son suggesting that mum gives daughter money for a house.

In this case on the surface it looks as if daughter is the favourite child and because of this has never been encouraged to work hard, save and get a good job. Son has had to do all of this to get his bought home. Daughter is about to be rewarded again for doing nothing. Presumably daughter is happy about the renting situation or she would have done something about it. In which case why help her buy a home at all?

warby68

Yes it looks like preference (although that isn't really our business) and might go wrong but with mum seemingly determined to do it, the will adjustment seems more workable than the gift with loan element option.

For some reason, I inferred the amount wasn't huge and could be covered by the assets you are 'allowed' to keep after care costs. I could be wrong there of course.

I've seen siblings hugely divided by unequal treatment by parents and even some who were treated perfectly equally but for some reason thought they were more equal - a brother who thought he should have more than two sisters just because they were female!!

Red-Squirrel_2

Cakeguts wrote: »

In this case on the surface it looks as if daughter is the favourite child and because of this has never been encouraged to work hard, save and get a good job. Son has had to do all of this to get his bought home. Daughter is about to be rewarded again for doing nothing. Presumably daughter is happy about the renting situation or she would have done something about it. In which case why help her buy a home at all?

Sorry, but where on earth are you getting all that from? Projecting here possibly? Because there's no sign of that in the OP's posts, she's considering all sorts of daft ideas to try and keep it equal in fact!!

Cakeguts

Red-Squirrel wrote: »

Sorry, but where on earth are you getting all that from? Projecting here possibly? Because there's no sign of that in the OP's posts, she's considering all sorts of daft ideas to try and keep it equal in fact!!

I got it from the fact that she is thinking of buying the daughter a house at all and from the fact that she is thinking of ways to make it look to the son as if it is equal like the will adjustment or giving him part of the daughters house. There is no comment as to whether the daughter wants a house bought for her only what the mother thinks and what the son agrees with regarding what the mother thinks.

The easiest way round this problem is not to buy the daughter a house. She is obviously quite happy renting. I don't think parents should try to impose their ideals on their children either. Some people prefer to rent. We haven't heard anything about what the daughter wants. She may want to rent.