please help does my 83 year old mum have to pay capital gains?

pennypuppy

Mum paid 250 for the valuations of both houses and will be paying 500 legal fees . Hopefully that will make it ok. I am presuming now she has to get a valuation done properly (I was guessing 50k, hopefully the valuer agrees). Thank you do much. It is appreciated. 

unholyangel

pennypuppy said:

Dads will was strange, he said his estate was for her lifetime then it should be split for his kids. (I think he always thought she would leave him, he was a hard man to live with). He had PTSD. 

You need to be very clear here, what did your dad's will say? Because based on the post above, it sound like your mother has a lifetime interest in the property, not ownership of the property. 

Needless to say, she can't gift what she doesn't own.

pennypuppy

Dad's wording was...
'I devise and bequeath all of my property of whatever nature and whatsoever situate to my wife X for her life or until she remarries whichever first occur and thereafter should be divided into 3 equal parts for each of my children (named).'
Thankfully the three of us get on extremely well and are happy with the plans (my brother is getting another property). I am the executor and mums lawyer asked me to sign the deed because of that. 

Jeremy535897

That is a life interest in the estate. It sounds as if the life interest in respect of the derelict property has been terminated early, but instead of being divided between the children, it is being passed to one. This is a disposal of the property by the trustees OP is presumably a trustee) for capital gains tax, a potentially exempt transfer for inheritance tax by mother, and also appears to involve gifts by the remaindermen (the other children), but they should have no capital gains tax or inheritance tax implications.

pennypuppy

Thanks, I have to do my own will and may do similar.