Gifting a home

getmore4less

xylophone wrote: »

Why doesn't he just grant you and your spouse a life interest in the property rather than going through the gifting and change of registered proprietors malarkey?

If the parent are going to live there and have plenty of nil rate band it potentially saves any future CGT liability with no extra IHT liability

A life interest trust would not have the same benefit(since 2006).

parents may need to be careful who inherits the house from them as this would be a gift so does not drop out of the sons estate for 7 years and if he re inherits it that could result in double the value in his estate if there was an unfortunate sequence of deaths in the 7 years(unless there is some IHT relief for this scenario).

xylophone

But if he gifts the property and the parents will it to him, unless he sells the property immediately he inherits, he is likely to incur a CGT liability anyway?

getmore4less

xylophone wrote: »

But if he gifts the property and the parents will it to him, unless he sells the property immediately he inherits, he is likely to incur a CGT liability anyway?

in a few years it could have a higher base price than the current base price.

With tax it not about if there will be any but how much will it be.