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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3653
Experience:  Solicitors 2 years plus PQE
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Hi, I have a will in place already with my husband for our

Resolved Question:

Hi,

I have a will in place already with my husband for our own property. My mum owned a property and has a will in place, which I am executor of. Recently my mum gifted the sale of her property to my husband and I and we put the money towards another property for her along with a mortgage. So we now own a second property and officially mum doesn't own a property.

I really want to know if mum needs to alter her will and what do my ,husband and I have to do with our existing will as the second property if anything happened to my mum would need to have a share of it passed to my brother and sister.

This seems complicated to me, so please advise.
Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.
Hi,

Thank you for your question and welcome.

My name is XXXXX XXXXX I will assist you.

If you have been gifted the property then you wont need to share it with your mothers other potential beneficiaries as it was a gift in her life time.

What you may need to be concerned of is the following:
1. Any Capital Gains Tax your mother may have to pay due to the deemed disposal;
2. At current this is a Potentially Exempt Transfer, if she passes away within 7 years, you may be liable to pay inheritance tax on the gift.

I would note as well, that you should have some proper agreement in place for your mother to live at the new property to show that the benefit of the gift has properly passed to you.

Kind regards

AJ
Customer: replied 3 years ago.

Hi,


 


When you say a proper agreement for mum to live in the property, what do I need to do?


 


Also if mum was to pass away within the first 7 years what would I be liable for, please enlarge on this.


 


I am one of three children and I was the only one in a position to assist my mother. So a third share to my brother and sister will be made prior to the purchase of the new property, when mum passes away. The other problem that we have is that my husband is on the deeds, as the mortgage company requested this, so if anything was to happen to me then I would want to make sure that my siblings still received their share. In this case what would you suggest?


 


I am not clear of what we still have to do will wise, if anything.


 


Regards


 


 

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

1. I would say some form of lease agreement needs to be in place even it is for £1.00 rent.

2. It really depends on the size of her estate, but you may have to pay Inheritance tax on the value of what you have been given. The current rate for anything over £325000 is 40%.

3. If you have been gifted the property it is yours, your brother and sister wont be able to claim an interest in it. If you have a mortgage on it in your own names you wont be able to give them any legal interest in the property. You could potentially either leave them a share of the property in your will or gift them any proceeds of sale of the property.

I look forward to hearing from you.

Kind regards

AJ
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