ChatterBank5 mins ago
CGT, deeds of gift and declaration of trust
I and my 2 sisters took out a mortgage and bought our father's share in the family's home, 20 odd years ago. He is now deceased(9 years).
My mother approx 9 years ago transferred her half share to us. She was diagnosed with myeloma, (blood cancer) and wanted us to deal with all the financial affairs for her.
She has since also been diagnosed with alzheimers (3 years ago) and has for the past year lived in a care home. The family home became vacant.
(All 3 sisters have lived in the property off and on and one only moved out 5 years ago, having lived there all her life. I moved back in to care for mum.) I transferred one of my sisters off the deeds about 3 years ago so there are only 2 names on the register.
I made the neccessary transfers via the land registry but did not do declaration of trusts or deed of gift. Were these necessary? if so why? Are they to protect the donor (my Mum) or each recipient from each other?
We have just let the property to students for a short period and are possibly looking to sell the property.
I am aware the property has gone up in value over the past 20 years,will we have to pay any cgt, if so how can we reduce this?
You mentioned something about a trust, how will this affect the above situation?
My mother approx 9 years ago transferred her half share to us. She was diagnosed with myeloma, (blood cancer) and wanted us to deal with all the financial affairs for her.
She has since also been diagnosed with alzheimers (3 years ago) and has for the past year lived in a care home. The family home became vacant.
(All 3 sisters have lived in the property off and on and one only moved out 5 years ago, having lived there all her life. I moved back in to care for mum.) I transferred one of my sisters off the deeds about 3 years ago so there are only 2 names on the register.
I made the neccessary transfers via the land registry but did not do declaration of trusts or deed of gift. Were these necessary? if so why? Are they to protect the donor (my Mum) or each recipient from each other?
We have just let the property to students for a short period and are possibly looking to sell the property.
I am aware the property has gone up in value over the past 20 years,will we have to pay any cgt, if so how can we reduce this?
You mentioned something about a trust, how will this affect the above situation?
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I reckon you are going to have to acquire and pay for proper tax advice - this is far too complicated to try and do for free here, in less than 2000 words.
Yes, it looks like there will be some liability to CGT when the house is sold because it isn't the principal private residence for at least some of the proprietors.
A good tax accountant can probably help minimise some of the liability
Yes, it looks like there will be some liability to CGT when the house is sold because it isn't the principal private residence for at least some of the proprietors.
A good tax accountant can probably help minimise some of the liability
I agree latterly with Buildresmate
this is far too complicated for a website such as this.
You need to see a tax accountant.
should not be expensive considering how much money is involved.
There are the usual questions that you just as well prepare as you are going to be asked. DId you pay your father the market price for the house or only some ? thereafter did he pay you a market rent to stay in it or did he move out?
Similarly for your mother. If she just gave it to you and stayed in it then there is the thorny problem of reservation of benefit. Thorny because the tax situation is the same as if the transfer had not occurred. Thornier because you giving her her half back does not undo some of the tax liablilities
Definitely one for the Lawyers: You didnt really transfer houses between you without using a lawyer did you ?
this is far too complicated for a website such as this.
You need to see a tax accountant.
should not be expensive considering how much money is involved.
There are the usual questions that you just as well prepare as you are going to be asked. DId you pay your father the market price for the house or only some ? thereafter did he pay you a market rent to stay in it or did he move out?
Similarly for your mother. If she just gave it to you and stayed in it then there is the thorny problem of reservation of benefit. Thorny because the tax situation is the same as if the transfer had not occurred. Thornier because you giving her her half back does not undo some of the tax liablilities
Definitely one for the Lawyers: You didnt really transfer houses between you without using a lawyer did you ?
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