Lifetime gift of property with conditions?

seashore22

vigman wrote: »

Thanks for all the quick comments.

Restrictions are because in the past when ill he has gone on spending binges and owed thousands. If he knew he could sell it, he would and probably gamble it away or buy bad investments.

The family member doesn't want to think of him destitute ever. Owning the property with these conditions would not stop him renting it out and living somewhere else for example.

The family member wanting to make the gift wants to start reducing their own IHT commitments and hope to live until there is no IHT on this flat.

I thought trusts would come up but who sets them up and how, and who the trustees nominated are always seems incredibly complicated.

Note: Hadn't seen 00ec25's post before writing this!

TIA

Vigman

I do understand the issues and sympathise with the difficulties. My husband's family had a similar situation and the family home was sold and all the money squandered. Their solution was to buy a property for the person, but keep it in the names of other family members, much like your current arrangement. Many things could have gone wrong, but fortunately it worked well and the property was only sold when the person no longer needed it.

How old is the person wanting to gift the property and how old is the recipient? Would deprivation of assets be a concern with a trust?

getmore4less

there are specific trusts for vulnerable people if they qualify.
These have tax benefits over regular trusts.

Definitely an area for specific specialist advice.

xylophone

The OP might try here

https://www.mencap.org.uk/willsandtrusts

as it seems that the proposed beneficiary can be regarded as a "vulnerable adult".

vigman

Thanks again everyone.

The family member wishing to gift the flat is around 62 years old but in poor health. They have no children and also want a lifetime gift hopefully to pass the IHT time threshold to reduce their own estate at the same time. My son is 33 years old.

I'll follow up leads and advice given here (especially him being able to sell the specific property but only being allowed to use the sale money to buy another property....not Bitcoins or similar!!)

The other worry was to prevent him making an unfortunate marriage, as nearly happened, and then the wife claiming half the property in divorce proceedings.

Vigman

AnotherJoe

I think onky a trust would accomplish that.