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Selling my sole property while also being "tenant in common" on a separate parent's house
As the title suggests I'm in the process of selling my house but want to know if I'm due to pay anything extra (capital gains?) as I'm also a tenant in common on my mum's house since my dad passed away last year. I know there isn't any capital gains to pay when selling a sole property but I need to understand if me being a tenant in common with my mum on her house changes things.
The reason for doing it this way was because my parents wanted to protect against any future care costs all being taken up by selling their house. For clarity the tenant in kind was finally completed in June and the house I'm selling is my only residence and has been for a decade.
Thx
Comments
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generally if the house your selling is your primary residence since you bought it, then no CGT
On a separate note, putting TIC is a common method of reducing care home liability, but only up to a point. Assuming 50% TIC, then that part of the estate is still considered to settle debts. rather than 100% of the house.
The downside is when you come to sell, you will be subjected to CGT and new house bought will be considered a second home and subject to further stamp duty charges
One can setup TIC themselves and do not need to pay thousands to solicitor to do it. A simple form you fill in to the registry and ensuring you have a will in place is what's needed
"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP2 -
Thank you.When it comes to having to sell my mum’s house then yes I accept it’ll then be a second property to me and pay what’s required in capital gains.It was a TIC 50/50, with my dad’s 50% falling to me. We understand mum’s 50% would go towards care fees if she ever needs it.So long as right now there is nothing to pay upon selling my house that’s fine. Other than stamp duty, legal fees, (inept) estate agent fees etc of course
Really appreciate the advice so promptly.0 -
I’m not sure why you or your parents thought that this plan would do anything to protect against future care costs.1
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Are you also buying another property?0
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Because it works to protect the share left to someone other than the spouse while leaving the remaining share to fund the surviving spouse's care.SpiderLegs said:I’m not sure why you or your parents thought that this plan would do anything to protect against future care costs.3 -
I have one house I live in with my family and I’m selling it and moving. I also am TIC with my mum on her house after dad died.SpiderLegs said:Are you also buying another property?So no I’m not buying another house I’m just moving.0 -
Ah I missed the important point that father had died.Mojisola said:
Because it works to protect the share left to someone other than the spouse while leaving the remaining share to fund the surviving spouse's care.SpiderLegs said:I’m not sure why you or your parents thought that this plan would do anything to protect against future care costs.0 -
I really hope for your (and your mums) sake you don’t end up getting divorced, going bankrupt or need to claim any means tested benefits as this’ll get very messy!
This is no joke. I used to work in this area and I’ve seen people lose their house in an attempt to avoid care home fees. The risks far outweigh the benefits in my opinion.1 -
the old saying of never mix family and money is very valid. But setting up a TIC hopefully both parties have considered the risks and are of sound mindGavin83 said:I really hope for your (and your mums) sake you don’t end up getting divorced, going bankrupt or need to claim any means tested benefits as this’ll get very messy!
This is no joke. I used to work in this area and I’ve seen people lose their house in an attempt to avoid care home fees. The risks far outweigh the benefits in my opinion.
But is a reasonable path to reduce care home fees. HOwever would you want your parents to live somewhere nicer and paying for it, or somewhere grotty where the council puts them and leaves them for hours crying for help while they are soiled?
Life is a choice and one must live with the consequences of those choices.
"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0
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