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Sister buying me out
Comments
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Yes, it states rent free but paying bills and upkeep.0
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Who were the trustees of the trust set up by you fathers will
It will most likely be an qualifying interest in possession trust.
Who were executors of the fathers will?
Did it go to probate?
If it did loss of the will should not be relevent as there is a public record copy.0 -
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.
Looks like a qualifying interest in possession trust was set up the tax position changes as the did not inherit the share of the house.0 -
My mother, sister and I. My sister was executor and no it didnt go to probate.0
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So how does that affect the amount of tax0
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This should not be a big deal,
Simplified
The three of you were trustees of you fathers share for mum to live in.
(legal ownership should have changed but should not be a problem)
Interest in possession for tax purposes its like you mum inherits.
Mum dies trust finishes you get your shares along with mums shares to you.
Land reg should be happy with death cert of dad and probate for mum0 -
So the Capital Gains Tax will be the same as if I had just inherited 50% now?0
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Sorry, I dont quite understand. I will owe Capital Gains Tax for the amount I receive now? Not going back to the date my Father died?0
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