Inheritance buy out

Esparto

Hi I have been left my Mum's house shared 50/50 with my brother.  Due to my personal circumstances my brother has agreed to let me buy him out for less than 50% in exchange for him taking me out of his will where I was to inherit 10% of his estate. This would be paid in cash to him from our savings.  This will enable myself and my sick husband to remain in the house where I have lived for the last 6 years caring for my Mother since my father passed away on 2014.  Am I able to have a larger share of the house without incurring any taxes or even stamp duty if I am in theory buying  the house?   My husband and I do own a buy to let property for which we pay tax every year.

AdrianC

Is the house still owned by your mother's estate? Or has it been transferred by the executor into your/brother's joint names already?

If it's still within the estate, then the simplest way to do it is to pay the money into the estate, and you inherit the house 100%.

canaldumidi

As above, though to be clear, if the will splits the Estate 50/50, the money you pay for your brother's share should be paid by the Executers 100% to him, with any otjer assets being split 50/50

Esparto

AdrianC said:

Is the house still owned by your mother's estate? Or has it been transferred by the executor into your/brother's joint names already?

If it's still within the estate, then the simplest way to do it is to pay the money into the estate, and you inherit the house 100%.

I have applied to land registry for joint names of myself and brother on the deeds and am still waiting .

Esparto

I am considering a deed of variation,  i.e.  my brother gets £200000, and I get £300000.  Will this mean that if I pay him £200000 out of my savings and transfer the house to my name that would be considered a gift to him for which tax would be due for up to 7 years?

MaryNB

Esparto said:

AdrianC said:

Is the house still owned by your mother's estate? Or has it been transferred by the executor into your/brother's joint names already?

If it's still within the estate, then the simplest way to do it is to pay the money into the estate, and you inherit the house 100%.

I have applied to land registry for joint names of myself and brother on the deeds and am still waiting .

Has your brother owned property before? If not, putting his share of the house in his name will affect his FTB status and he'll lose out on the FTB stamp duty relief. Not sure if you can still avoid that, I don't know if you can rescind a land registry request.  

wend33

MaryNB said:

Esparto said:

AdrianC said:

Is the house still owned by your mother's estate? Or has it been transferred by the executor into your/brother's joint names already?

If it's still within the estate, then the simplest way to do it is to pay the money into the estate, and you inherit the house 100%.

I have applied to land registry for joint names of myself and brother on the deeds and am still waiting .

Has your brother owned property before? If not, putting his share of the house in his name will affect his FTB status and he'll lose out on the FTB stamp duty relief. Not sure if you can still avoid that, I don't know if you can rescind a land registry request.  

if your application has not been completed you can contact Land Registry and withdraw it.