Sister buying me out

00ec25

painted wrote: »

Im quite happy with the house valuation, I had three done. As it is my sister will have to put a lot of money into the house as it needs a lot of work doing on it. I didnt want to keep the house so I would never have thought of buying her out.

then it sounds like the executors are making a right meal of this will because, as GM posted above, they should not be transferring the property into your name, they should do it direct to sister and sister gives you money instead.

even if the will expressly states that the named property is to be left to named people, the will can be varied to say brother gets a half share, not the property itself

painted

Its not quite that straight forward. Sister and I should have inherited my fathers 50% of the property when he died (my parents did not own the whole property jointly) Our names werent put on the deeds as an oversight. We now inherit Mothers 50%. Also original will has been lost but we have a draft copy. We are not being charged full price as the solicitors are taking responsibility for the loss. But all that is being sorted. There is a process we need to go through.
But all that really does not have anything to do with the original question.

pinklady21

Why not contact another solicitor and ask them to advise you on your situation? The initial chat should be free. They can therefore advise you properly of any potential risks for you of not taking independent advice.
Best of luck.

00ec25

painted wrote: »

Its not quite that straight forward. Sister and I should have inherited my fathers 50% of the property when he died (my parents did not own the whole property jointly) Our names werent put on the deeds as an oversight. We now inherit Mothers 50%. Also original will has been lost but we have a draft copy. We are not being charged full price as the solicitors are taking responsibility for the loss. But all that is being sorted. There is a process we need to go through.
But all that really does not have anything to do with the original question.

OK, your original question asks for "pitfalls" so your additional info does open up a few extra issues ...

- you inherited 25% of the property when father died "sometime ago"
- you are now inheriting the other 25% from mother.
- your sister has the same pattern of 25 & 25

Have you personally lived in the property as your only/main home since father died and you became a legal co-owner with your mother?
If not, then your "disposal" of your 50% share to your sister is subject to capital gains tax since at least half of your 50% share relates to a property which is not exempt from CGT as you have been its owner since father's death sometime ago

You and sister have agreed a valuation. It appears that valuation is based on having had 3 independent valuations undertaken and therefore it can be used as the market value which is the figure required for CGT purposes when there is a disposal between siblings.

painted

Thank you 00ec25, will look into that.

G_M

I'm off to fix the dripping tap in my kitchen.

00ec25

G_M wrote: »

I'm off to fix the dripping tap in my kitchen.

but without drips the mould will not grow, and without mould we will not get a harvest of fungi to digest

getmore4less

Solicitors are over complicating probably to increase their fees.

Let the solicitors do the transfer into joint names.

Then sack them from the rest of the house process you don't need then.

do the transfer to one name yourselves simple transaction if no mortgage.

getmore4less

Did the origins transfer on fathers death involve a life interest?

Critical information as it changes the tax position.

painted

Sorry, what is a life interest please?