Leaving 2nd property in will

WhatsYaMaCallit

I am an elderly gentleman so please bear with me whilst i try to explain the situation i have,
Many years ago i bought a house for my son and his then young children to live in.
The house was in my name but he lived in it and he paid the mortgage payments.
He lived there for the 24 years until the mortgage was paid off.
Then 4 years ago after his older children left home he decided to relocate.
The house was sold and a new one was bought without a mortgage in a different area where he now currently lives.
The current house he lives in is also in my name and not my sons.

I want to leave that house to him in my will.
I have never lived in either house, i thought all those years ago i was doing a good thing and helping out my son but now i have found out that there may be taxes to pay.
I really don't understand the situation i have found myself in.

Keep_pedalling

In hindsight it would have been better to gift him the house as selling or gifting now will result in a CGT liability for you. Did you pay CGT on the last sale? After 24 years there should have been a significant liability. How much did you pay for it? What did it sell for?

By letting your son pay the mortgage but not having any legal ownership you may also have increased your estate’s IHT liability as well. What is your total net worth including this house? What is your marital status?

FlorayG

Ow. Feel sad for you, but want to say don't feel stupid because I only recently found out about CGT charges as well. In my case not a huge problem as my other property is rented out, but for your son's home it's very awkward. Best of luck

silvercar

There is no CGT on death, so any gain the house had made will not incur a CGT bill.

However, the house will probably be part of your estate and may incur IHT, if your estate is large enough.

I say probably because there is a difference between legal ownership and beneficial ownership, so in certain circumstances it could be that you are the legal owner and your son the beneficial owner, thereby removing it from your estate.