Inheriting two properties from parents?

parkrunner

chris1012 wrote: »

I am thinking a head here with no background knowledge.

My parents have two homes - One they live in and one they rent out.
I am their only son and have no other siblings.

In the event of death to both or one parent what would happen to these properties?
Would I naturally be granted them and if so, would inheritance Tax apply to me in this given scenario?

Both House prices are in excess of £800k

Whilst they are alive and they transferred ownership to me to one of their houses or both, how would this change in terms of tax?

I currently own my property and paying off an remortgage (20% of the value of the house) that I used to do some work on the property.

I hope not if only one parent dies!!

G_M

How old are they and are they both in good health?
Do they have other assets?
If they ever needed to go into a care home, how would they fund that?
How old are you?


You and they need to consider

* capital gains tax on them (if they part with their rental property as it's not their main residence)
* inheritance tax - this is inevitable to a greater or lesser extent, but planning could reduce it)
* the implications of a 'gift with reservation' if they gave you their current home but continued to live in it.Or indeed gave you the rental but continued to receive the rent

* capital gains tax on you if they gave you either property but you did not make it your main home

* implications of 'deprivation of assets' if they gave away either property to reduce their assets and try to make themselves eligible for local authority care


As you can see it is a potential minefield and you, but especially they,need expert specialist advice.


And they need wills.

Mojisola

G_M wrote: »

And they need wills.

Which allow for what happens if chris1012 dies before them as well as the straightforward inheritance.

zagubov

edgex wrote: »

Depends what their wills state...

Also depends on which country you're in.