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Stuart J
Stuart J, Solicitor
Category: Law
Satisfied Customers: 22624
Experience:  PGD Law. 20 years legal profession, 6 as partner in High Street Practice
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I have a property law question that I need advice on. An

Resolved Question:

I have a property law question that I need advice on.

An inherited property with two beneficiaries, one of which is a minor. Is it possible for the minor's share to be bought out and the funds put in trust and handled by a trustee until the minor becomes of age?

If this is not possible, would both names need to be put on the title deed, with a trustee signing on behalf of the minor?
Submitted: 4 years ago.
Category: Law
Expert:  Stuart J replied 4 years ago.
Hello, I am Law Denning and I am a practising solicitor in a High Street practice. I have been an expert on this website in UK law since 2008. During that time, as you appreciate, I have answered thousands of questions from satisfied users on a variety of subjects. Because we are all in practice with clients and court and other users, I might not always respond in minutes. Please bear with me in that case

It is my pleasure to try and assist you with this today. Please bear with me while I gather some further information from you in order for me to be able to advise you fully.

Unless I have all the facts that I need, my answer would not be accurate.

How old is the minor?
Customer: replied 4 years ago.

He is 13 yrs old with a mental and physical disability

Expert:  Stuart J replied 4 years ago.


When he reaches 18 will he be
capable of knowing what he is doing and be a full mental capacity?

Who is the other beneficiary?



Who would be buying out the minor's
share?



Why is the property not being
sold on the open market?

Customer: replied 4 years ago.


The minor will not be capable of making his own decisions even when he reaches 18 yrs old.

The minor's sibling is the other beneficiary and wished to buy out the minor's share if possible, keeping the property for sentimental reasons and to avoid inheritance tax.



Expert:  Stuart J replied 4 years ago.

I cant see why that avoids inheritance tax. Please explain.

Will the other beneficiary be paying full value for the other's 50% share based on 3 independent valuations?

What does the OB intend to do with the property?

Are you the OB?

 

Customer: replied 4 years ago.

I assumed that there wouldn't be inheritance tax to pay if a beneficiary decided to live in the property they had inherited rather than selling it. Is this not the case then?

The OB would want to pay the full value for the other's 50% but didn't know whether this was a possibility has they had both inherited this property.

I am not the OB.


Expert:  Stuart J replied 4 years ago.


Thank you.

I don't know where the idea has
come from that if a beneficiary decides to live in a property, there is no
inheritance tax to pay but that is not the case. If someone inherits a property
or an amount of money, then if it is over the inheritance tax threshold, there
is inheritance tax to pay. There is no inheritance tax between spouses and no
inheritance tax for bequests left to beneficiaries who are charities. So we can discount that.



Assuming that the other
beneficiary wanted to buy out the siblings share, the executors are under a
duty to make sure that the OB pays full value and that this price is supported
by three independent valuations.



The disabled beneficiary is not
able to get hold of the lump sum until 18 in any event before that, is only
eligible for any interest if it is to be used for "education, maintenance and
benefit".



In the disabled beneficiary is
never going to be capable of managing his or her own affairs, then it would be
up to the executors to manage it on his/her behalf.



The executors need to be
extremely careful that they are not seen to favour one beneficiary over the
other.





Does that answer
the question.? Can I assist any further?



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follow up any individual point you make



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