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IHT Query Regarding Property

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  • GDB2222GDB2222 Forumite
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    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?
    No reliance should be placed on the above! Absolutely none, do you hear?
  • se_ypse_yp Forumite
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    Thank you all for the input. much appreciated.


    GDB2222 said:
    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. 
  • theoreticatheoretica Forumite
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    se_yp said:
    Thank you all for the input. much appreciated.


    GDB2222 said:
    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
  • edited 12 September 2022 at 7:43AM
    se_ypse_yp Forumite
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    edited 12 September 2022 at 7:43AM
    Once house is split (most likely equally), it would be joint decisions on everything related to it.
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