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Inherited half a second property
Backfire3010
Posts: 1 Newbie
I own a flat with a mortgage which my daughter lives in, I live with my partner who owns a house outright. My Mum's husband left his half of their house to my sister and I when he passed away and some 10 years ago, my Mum signed her half of the house over too so now my sister and I own the house between us. My mum still lives in the house and obviously doesn't pay any rent or anything so my sister and I don't receive any payment from her.
My question is, is my half of my Mums house regarded as a second property if my Mum is continuing to live .
HMRC are aware of it and have confirmed that I receive no benefit from it at this time.
My question is, is my half of my Mums house regarded as a second property if my Mum is continuing to live .
HMRC are aware of it and have confirmed that I receive no benefit from it at this time.
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Comments
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Yes - you are currently regarded as owning 2 properties - the one your daughter lives in, and the inherited/signed over one.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her1 -
As you live in neither of the properties you own/co-own, you would be liable for CGT when each are soldIf you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales1
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As well as CGT your mother’s gift is one with reservation of benefit so regardless of when she did this it still forms part of her estate for IHT purposes. If may also be considered as deliberate deprivation of assets should she ever need residential care and has no significant other assets.2
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to elaborate - if she is in a financial situation which means the local authority might pay for her residential care they will be looking at selling her half of the house to fund it. Even though she has given it to you and sis. If a sale isn't actually forced they would be likely to put a lien on it so they get their money when it is sold eventually. Alternatively if she is able to remain in the home but needs them to pay for carers to come they will be looking to you and sis to pay the bill.Keep_pedalling said:As well as CGT your mother’s gift is one with reservation of benefit so regardless of when she did this it still forms part of her estate for IHT purposes. If may also be considered as deliberate deprivation of assets should she ever need residential care and has no significant other assets.I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe and Old Style Money Saving boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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