As the gifts are to residents there is no reservation of interest if the proportion of the property gifted is proportional to the occupation.
I did wonder about that, but what happens when they move out?
Precisely our thoughts. The gifts are being handed to the children who will continue to live there and assuming they are all contributing towards upkeep of the house and bills etc (perhaps splitting equally 3 ways) then I would have thought gift with reservation doesn't apply.
If the 2 children move out before the 7 years however that i understand brings about some complication. I should add that this is just the 1st step in the IHT planning process. The next step will likely be the "big one" where she decides whether to sell and downsize, convert the home into a HMO, take on a lodger or something of the sorts.
As the gifts are to residents there is no reservation of interest if the proportion of the property gifted is proportional to the occupation.
I did wonder about that, but what happens when they move out?
Precisely our thoughts. The gifts are being handed to the children who will continue to live there and assuming they are all contributing towards upkeep of the house and bills etc (perhaps splitting equally 3 ways) then I would have thought gift with reservation doesn't apply.
If the 2 children move out before the 7 years however that i understand brings about some complication. I should add that this is just the 1st step in the IHT planning process. The next step will likely be the "big one" where she decides whether to sell and downsize, convert the home into a HMO, take on a lodger or something of the sorts.
If she - as only a 1/3 owner of the property - would still have the majority of decision making on whether to sell/HMO etc then that would be an argument that gift with reservation would apply.
But a banker, engaged at enormous expense,
Had the whole of their cash in his care. Lewis Carroll
Replies
Precisely our thoughts. The gifts are being handed to the children who will continue to live there and assuming they are all contributing towards upkeep of the house and bills etc (perhaps splitting equally 3 ways) then I would have thought gift with reservation doesn't apply.
If the 2 children move out before the 7 years however that i understand brings about some complication. I should add that this is just the 1st step in the IHT planning process. The next step will likely be the "big one" where she decides whether to sell and downsize, convert the home into a HMO, take on a lodger or something of the sorts.
If she - as only a 1/3 owner of the property - would still have the majority of decision making on whether to sell/HMO etc then that would be an argument that gift with reservation would apply.
Lewis Carroll