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Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.
May I ask your principle aim in buying your mothers property please?
to take advantage of right to buy scheme.
also my mother wishes to leave this to our family in her will
thank you for the above. I apologise for the delay in reverting to you-I have been in a meeting
the most common approach that families use when considering providing financing the purchase parents Council house under the discount right to buy scheme is not to place the property into their parents, or in this case, your mothers name. To do so, can allow property to claimed by the local authority in respect of care fee provision and also can affect benefits and other entitlements as the property would need to be declared as belonging to your mother
accordingly, a better approach is to consider the use of a life interest trust. This is a trust settlement which is relatively straightforward to enter into using a solicitor, whereby you and your siblings who are jointly to purchase the property agree the shares which each of you will have in the property when it is eventually sold and also provide that your mother has a life interest in the property-namely a right to enjoy and live in the property for the rest of her life
the advantage of this arrangement is that the property does not actually belong to your mother but rather she merely has the use of the property. This prevents the council making any claims against the property in respect of care fee provision and maintenance property ultimately belongs to you and your siblings and such shares as you provide for. at the same time, it gives your mother security because she cannot be forced by anyone to move out of the property against her wishes
finally, it can be extremely effective for tax purposes because when your mother comes to pass away, if she has a life interest in the property, the purposes of tax, the property is treated as belonging to her and accordingly, you and your siblings take the property back after your mother's passing at the value it is then worth. this is important from the point of view of capital gains tax because then we need come to sell the property at a later date, you would pay capital gains tax on the difference between the value of the property as at your mother's passing and the value when you come to sell it which essentially means if you sell in a relatively short period of time after your mother's passing, you are unlikely to have to pay capital gains tax whatsoever
most solicitors will be able to set up a life interest trust for you relatively inexpensively. Ideally, you would use a solicitor that specialises in trusts and taxation rather than a general solicitor. Most medium and larger firms have a private client department in which you would find such a specialist solicitor
is there anything above I can clarify for you?
I will mull this over and may get bacl
back to you thanks
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I was given information i had not been aware of at all. this will be useful.