Writing a Will (the estate as opposed to life insurance and pension).

Emmia

mp203 said:

Keep_pedalling said:

mp203 said:

Regards my daughter losing out on FTB status; what might the implications of this be? I did Google it but, as usual, my brain was fried after trying to read through a handful of results. I did note that one of the govt. schemes wasn't as good as it first appeared (buy a new home at a discount; but if you sell it you have to sell it at a discount too).
Regards SDLT my guess is that if she were to buy a house or a flat it would be a relatively modest one, even if she was using her inheritance as a deposit.

Losing her FTB status might not be that painful, but having to pay the additional 5% SDLT will be. It will be even more painful if she buys in Scotland where the additional dwelling supplement is 8%.

Thanks.
With FTB status you don't pay any SDLT on your first property up to £250,000; is that correct?
And without it, you pay 5% in England; is that correct? If so, if you bought a house without FTB status for, say, £200,000, you would pay £10,000 SDLT; is that correct?
My daughter could make more than £10k in rental income, maybe (depending on the period of rental). And she'd have the option of living in the property herself, at then end of the latest tenancy agreement period.

Is it even a property in an area your daughter might want to live in? I'm not sure I'd want to live in a property owned by a close deceased relative.

I can appreciate that if you have a lovely flat /house in a posh/happening place in London/another city centre with a strong likelihood of price rises... that your daughter inheriting the property and renting it out might be desirable - not withstanding the headache that being a landlord would be for your ex until your daughter is 18.

But otherwise I'd direct for the property to be sold and for your daughter to inherit the proceeds. Cash in the bank will help her buy her own property, of her choosing at a time she wants, or pay for travel, education etc. 

How old is your daughter now? How likely is it that you'll live to see her 18th birthday?