How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask JGM Your Own Question

JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 10254
Experience:  30 years as a practising solicitor.
31090051
Type Your Law Question Here...
JGM is online now

Wife's mother died 20 yrs ago - father remarried and bought

Resolved Question:

Wife's mother died 20 yrs ago - father remarried and bought a second property 8 yrs ago - now valued at £118,000 (owned jointly). 1st. Property "Cornerways" was purchased in 1974 for approx £20,000 and is now valued at £227,000
Cornerways will be inherited by my wife - however wife's father would like to gift Cornerways now as we use the property frequently to help with care as wife's elderly father is fragile and step mother is disabled due to stroke.
The question is really over tax liability. Wife has no income and therefore not a tax payer. Would if be better to inherit Cornerways when the time comes or transfer now as her father wants and be subject to CGT?
Submitted: 1 year ago.
Category: Law
Expert:  JGM replied 1 year ago.
Thank you for your question.
It may make little difference. A disposal now would certainly start the CGT clock ticking early if it isn't going to be your main residence. However, if you wife's father survives seven years from the disposal it wouldn't form part of his estate for IHT purposes.
If you wait for his death, the value of the house would certainly form part of the estate (although you have see today's budget which says that his own home wouldn't be included from 2017 onwards). An increase in capital value for CGT would not start until the date of death.
Happy to discuss further.
I hope this helps.
Please leave a positive response so that I am credited for my time.
Customer: replied 1 year ago.

Thank you,

Just to clarify would the property he is now living only 50% of its value would count towards his estate as it is in joint names up to 2017?

If Cornerways is transferred now would her father have to pay CGT on what he paid for the property and current value. Then if sold after death wife would pay CGT on value at time of sale minus value at death - correct?

Thank you,

Stuart

Expert:  JGM replied 1 year ago.
The second property: that is correct if the property is in joint names.
As regards ***** ***** if it is your father and step mother's main residence they would have no CGT liability. If it is transferred and the transferrees aren't living in it as their main residence they would have a potential CGT liability when they dispose of it based on the value at the date of acquisition.
Customer: replied 1 year ago.

Sorry to be a pain, but transferree will not be living in property so CGT will be based on value at date of transfer to my wife and not when purchased in 1974.

Thank you.

Expert:  JGM replied 1 year ago.
Yes that is correct.
JGM, Solicitor
Category: Law
Satisfied Customers: 10254
Experience: 30 years as a practising solicitor.
JGM and other Law Specialists are ready to help you

What Customers are Saying:

 
 
 
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
 
 
 

Meet The Experts:

 
 
 
  • Jo C.

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
< Previous | Next >
  • http://ww2.justanswer.com/uploads/EM/emus/2015-7-7_192327_bigstockportraitofconfidentfemale.64x64.jpg Jo C.'s Avatar

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
  • http://ww2.justanswer.com/uploads/BE/benjones/2015-12-1_0437_ennew.64x64.jpg Ben Jones's Avatar

    Ben Jones

    UK Lawyer

    Satisfied Customers:

    11553
    Qualified Solicitor - Please start your question with 'For Ben Jones'
  • http://ww2.justanswer.com/uploads/BU/Buachaill/2012-5-25_211156_barrister5.64x64.jpg Buachaill's Avatar

    Buachaill

    Barrister

    Satisfied Customers:

    1754
    Barrister 17 years experience
  • http://ww2.justanswer.com/uploads/JO/jojobi/2013-3-19_0265_maxlowryphoto.64x64.jpg Max Lowry's Avatar

    Max Lowry

    Advocate

    Satisfied Customers:

    894
    LLB, 10 years post qualification experience
  • http://ww2.justanswer.com/uploads/UK/UKLawyer/2012-4-12_9849_F2.64x64.jpg UK_Lawyer's Avatar

    UK_Lawyer

    Solicitor

    Satisfied Customers:

    750
    I am a qualified solicitor and an expert in UK law.
  • http://ww2.justanswer.com/uploads/KA/Kasare/kasare.64x64.jpg Kasare's Avatar

    Kasare

    Solicitor

    Satisfied Customers:

    402
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law
  • http://ww2.justanswer.com/uploads/OS/osh/2015-7-7_19268_gettyimagesb.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    8199
    LL.B (Hons), Higher Prof. Dip. Law & Practice