Thanks for your question. Please kindly RATE my answer when you are satisfied
Is your fathers estate over the inheritance tax (IHT) threshold please to your knowledge?
Thanks. The gift from your point of view is not subject to any income tax or other form of tax. However there is a caveat to this. If your fathers estate is worth more than the IHT threshold which you say is the case then he must survive 7 years from the date of the gift or the Revenue will assess his estate on his passing as if the property is still within this estate and assess tax on it. The gift will still stand and tax will be payable from his estate not the gift itself unless there is insufficient in the way of assets in his estate to pay the tax.
If your father makes you the gift absolutely as opposed to in trust then it becomes your property and as such your spouse would then have a potential claim against the same if you were to divorce. It does not follow that your spouse would suceed in a claim but they have a potential claim. If you wish to protect against this your father could a) leave the property in some form of trust for you instead or you and your spouse could enter into a post nuptual agreement (if you are already married) to prevent a claim by your spouse.
Is there anything above I can clarify for you?
Thanks for the reply,
please clarify what exactly you mean by some form of trust ?
please give me an example of how this is done ?
also can i find a post nuptual agreement online to download ?
Sorry for the delay in reverting to you. Certainly...
If your father has not yet made the gift, if you are concerned about a potential claim by your spouse, rather than his giving you the gift absolutely whereby it is yours, he could for example gift the assets to trustees (your could be one but would need at least one other) who hold the property on your behalf but in a way that your spouse cannot claim it because whilst the trust can give you the benefit of the property it would not actually legally belong to you. Popular forms of trust for this purpose are discretionary trusts and protective trusts. Inclusion of special overriding powers for trustees can avoid harsh tax treatment of trusts. It would be necessary to have a solicitor prepare a trust for you if this is something you consider would be worthwhile. Fee could be anything between £300-600 + VAT.
A post nuptual agreement is an alternative approach. This must be done through a solicitor because if the correct procedure is not followed precisely then it will likely be invalid. You can find a local solicitor that can assist using the "Resolution" website.
Is there anything above I can clarify for you any further?