Remove property from trust - to sell whilst still alive

xylophone

so in effect, we are buying the home as a 'normal' house sale, although under market value...

Which means that in effect FiL is making you a gift of some £45,000?

Why can he not be registered as a tenant-in-common with you and your spouse and so keep some ownership of the property?

sambodidly

Which means that in effect FiL is making you a gift of some £45,000?

 -----  Yes, although it is reasonable to buy a property for much less than the asking price? 

Why can he not be registered as a tenant-in-common with you and your spouse and so keep some ownership of the property?

-----  We don't want to buy a house with anyone else, as on his death, 'his part' of the property will need to be dealt with, which would result in us having to pay out 'other beneficiaries' for his part..

thegreenone

So what do your two BILs inherit when Dad has gone?

xylophone

-----  We don't want to buy a house with anyone else, as on his death, 'his part' of the property will need to be dealt with, which would result in us having to pay out 'other beneficiaries' for his part..

He could leave you his beneficial interest in his will (unless he would prefer to leave it to somebody else).

Or all three of you can own the property as joint tenants in which case it would pass to  the remaining joint tenants automatically by survivor ship regardless of the terms of his will.

If you should  both predecease him, predecease him then it would pass under the terms of FiL's will.

xylophone

-----  Yes, although it is reasonable to buy a property for much less than the asking price? 

Reasonable under what circumstances?

sambodidly

So what do your two BILs inherit when Dad has gone?
-----  BIL's dont want anything, their priority is FIL being looked after. by us, and as neither of them are able or want to, they are happy for us to buy the property, and care for FIL.    As the Equity Release is going up and up every year, there will be a time when there wont be anything left to leave anyway, and everyone is in agreement that the idea of some of the family keeping the family home is comforting.
We do not want joint ownership at all.
Reasonable under what circumstances?
----- I meant as in properties do sell for less than asking price, ie, we purchased a property in 2016 and the seller was desperate for a sale, and dropped a lot off the price.   A neighbour dropping 20k off hers as she had taken out a bridging loan and just needed rid urgently.

I know this is complicated and I do appreciate your help. 

xylophone

If not his sons, who are the "other beneficiaries" of his will?

sambodidly

If not his sons, who are the "other beneficiaries" of his will?
----- They are my sons, with a very small share

Keep_pedalling

sambodidly said:

If not his sons, who are the "other beneficiaries" of his will?
----- They are my sons, with a very small share

If you FIL no longer wants them to inherit he should make a new will, but if this is something you are doing to bypass the will then it is utterly wrong.

sambodidly

If you FIL no longer wants them to inherit he should make a new will, but if this is something you are doing to bypass the will then it is utterly wrong.
----  He already has a will that states how he wants his estate to be distributed on his death that doesn't list the house specifically so if he has any money left, that will be shared accordingly.   There is nothing utterly wrong here.  ALL parties are in agreement, both BILS don't want anything. The other two beneficiaries are our sons, who will inherit all we have when we die, thus inheriting anything from this property in time.   Everything is transparent within the family. Everything.  Also, like I said before, the FIL has an ER mortgage on the house going up at a silly rate, so given a few years, there will not be much equity left in the house anyway, if any.
Thank you, but I was looking for advice/answers to CGT and IHT .........