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Tax on property in trust
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Blackcatsrule
Posts: 1 Newbie
Hello
This is my first time posting on this forum. I wonder if someone could help.
25% of my mother's house is in trust to myself (my mother owns 50% and my sister the other 25%). My mother may need to go into a care home. If yes, we will need to sell the house.
Can anyone advise what would happen regarding any tax implications for myself and my sister.
Thank you
This is my first time posting on this forum. I wonder if someone could help.
25% of my mother's house is in trust to myself (my mother owns 50% and my sister the other 25%). My mother may need to go into a care home. If yes, we will need to sell the house.
Can anyone advise what would happen regarding any tax implications for myself and my sister.
Thank you
0
Comments
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Was this trust created by your father’s will? If it was this sounds like an immediate post death interest trust, which would avoid any tax implication for your self or your sister, because although the trust is the legal owner your mother is the beneficial owner.0
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Blackcatsrule said:Hello
This is my first time posting on this forum. I wonder if someone could help.
25% of my mother's house is in trust to myself (my mother owns 50% and my sister the other 25%). My mother may need to go into a care home. If yes, we will need to sell the house.
Can anyone advise what would happen regarding any tax implications for myself and my sister.
Thank you
However, does the trust go on to state that your mother is entitled to income from the trust in the event of a property sale or substantial downsizing? If so the trust now becomes a far more complicated entity for you to manage.
It should already have been registered with HMRC, but going forward the trust Income is taxable in the hands of the trustees prior to passing on the net income to your mother. It would also be desirable for annual trust accounts to be prepared in addition to the annual trust tax return.
These are tasks, you may no doubt need professional help, so consider employing the services of a Chartered Accountant, experienced in trust compliance matters.1
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