Thank you for your question
My name is ***** *****
I shall do my best to help you but I need some further information first
I assume that you are trying to avoid any Tax liability at all?
Sadly as you guessed the final option is not available!
What is the total value of your estate (round figures)
My apologies I was not sure that this was your ONLY asset
The most efficient way of dealing with this is to transfer one of the properties into joint names gifting your nephew half of the property.
This would reduce your Estate to below the IHT level.
I appreciate that if you do not live for 7 years there is a problem BUT there is a taper involved after the first three years which could well ensure that no IHT is payable.
Any other option would not achieve any better result since even the "purchase" option would not stand up to scrutiny.
Accordingly you only need to complete and sign the necessary conveyancing forms.
Please ask if you need further details
1. Taper relief is described here
IF you die within the first three years I am afraid that there is no way around this
2. This is a decision made by the owners of the property - it cannot be imposed
3. After your death your Executors will have to account for any monies given to anyone in the seven years prior to your death - including and loans so there would be no benefit
4. Creating a Trust would be a more expensive way of doing it
You can sell your nephew whatever percentage you wish - the Land Registry has no limits on this.
Creating a Trust is more expensive tan risking your not living for seven years after the Transfer
The Will will indeed pass to your nephew outside of the Will.
However since he is not your spouse your share of the value will still count towards Inheritance Tax
My apologies - I did indeed mean the Property will pass outside of your Will
2. You currently own one property - and the freehold of them both
3. Since the freehold has relatively little value it would be more sensible to simply transfer the flat into joint names
4. You can deal with the TR1 and the APP1 yourself if you wish - or get a solicitor to deal with it
5. There will need to be a valuation for the Land Registry
6. The TR1 can be sent to your nephew for signature
1. By all means use Zoopla or something similar
2. My apologies - it is indeed the AP1
3. Yes that is correct - you are transferring the whole from one owner to two!