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JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 11286
Experience:  30 years as a practising solicitor.
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What is the best way for 5 siblings who have inherited a house

Resolved Question:

What is the best way for 5 siblings who have inherited a house (holiday home) to pass it on to 13 in the next generation? We had thought that when one of us dies that share would pass to the other siblings etc with the proviso that once the property was finally sold the children of all 5 siblings would inherit equal share i.e. 1/13th.
We the siblings wish to remain in control for the time being. Can you help?
Submitted: 2 years ago.
Category: Law
Expert:  JGM replied 2 years ago.
Thank you for your question.
The best way of doing this would be to place the property in a trust, with the five siblings being trustees. The trust could provide that at a defined point in the future the property could be sold, or not as the case may be. It could also provide that a child of each sibling would become a trustee on the death of his parent.
There will always be capital gains tax implications on a second or holiday home but this will only be relevant on the final disposal of the property and it may be that there is no wish to sell the property at all depending on the wishes of the trusts and beneficiaries.
Happy to discuss further.
Please leave a positive response so that I am credited for my time.
Customer: replied 2 years ago.

Thanks for that!

Are you saying that when one of the original siblings dies there is no tax to pay on their share of the worth of the property at the time of their death, if the property is not sold?

Expert:  JGM replied 2 years ago.
Not if the property is owned by a trust, no.
Customer: replied 2 years ago.

I note your time indicates you are in the USA are yo sure your answers are valid here in the UK?

Expert:  JGM replied 2 years ago.
I am not in the US. The site is hosted from there but I am a lawyer based in the UK of some 28 years experience.
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