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 wingrovebuyer Your Own Question
wingrovebuyer
wingrovebuyer, Senior Solicitor
Category: Property Law
Satisfied Customers: 737
Experience:  Bachelor of Laws (Honours); PG Diploma in Law; Member of ALA; 9 years' experience
22732369
Type Your Property Law Question Here...
wingrovebuyer is online now

Our daughter is in private education. My husband and I would

Resolved Question:

Our daughter is in private education. My husband and I would like to set up an education trust for her where from at least part of the school fees to be paid. We have a rental property (we used to live there for 7 years) where there are 30,000 left on the mortgage. We can now release equity and pay this mortgage and then make a gift this property(value 125,000-130,000, rent 700pcm) to our 8 years old daughter. The rent from the property would cover about half of her school fees. Would she be the legal owner of the property before she is 18 years old and having her own tax return or we have to sell the property to her grandparents and then they have to give it to her as a gift?
Submitted: 4 years ago.
Category: Property Law
Expert:  Stuart J replied 4 years ago.
Thank you for your question here on Just answer. It is my pleasure to try and assist you with this today. Please bear with me if I need to ask for any further information from you in order for me to be able to advise you fully. My name isXXXXX and I am a practising solicitor. I have been an expert on this website in UK law since 2008. During that time, as you appreciate, I have answered thousands of questions from satisfied users on a variety of subjects.

Because we are all in practice with clients and court and other users, I might not always respond in minutes, particularly evenings and weekends. Please bear with me in that case. I will be online and off-line all day most weekdays and weekends.

Do you intend to hold it on trust for your daughter?
Customer: replied 4 years ago.

We have not set up the trust yet. We are considering this if this is the only way to transfer the ownership of the property from us to her.

Expert:  Stuart J replied 4 years ago.





I am going to opt out
of this for another expert to consider. Please do not reply or it comes back
into my inbox. Another expert will pick it up at some stage. It is now open to
all experts.



Expert:  Nicola-mod replied 4 years ago.
Hello,

It seems the professional has left this conversation. This happens occasionally, and it's usually because the professional thinks that someone else might be a better match for your question. I've been working hard to find a new professional to assist you with your question, but sometimes finding the right professional can take a little longer than expected.

I wonder whether you're OK with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Nicola
Customer: replied 4 years ago.


Thanks Nicola. I am happy to wait a bit longer.

Expert:  Nicola-mod replied 4 years ago.
Hello,

We will continue to look for a Professional to assist you.

Thank you for your patience,
Nicola
Customer: replied 4 years ago.
Relist: Other.
The Expert opt out and I am still waiting for an answer.
Expert:  wingrovebuyer replied 4 years ago.
Hello. I'll pick this up. If you want to transfer the property direct to you daughter, I'm afraid this is not possible until she is 18. This is because under 18s can't own property unless it is as the beneficiary of a trust. To do what you want, you need to set up a trust to take ownership of the property, and to take on the mortgage liabilities.
Expert:  wingrovebuyer replied 4 years ago.
Helo. If I've answered your question fully, please don't forget to leave a rating. If you don't, the site keeps your money but doesn't pay me for assisting you. Thanks, WB.
wingrovebuyer, Senior Solicitor
Category: Property Law
Satisfied Customers: 737
Experience: Bachelor of Laws (Honours); PG Diploma in Law; Member of ALA; 9 years' experience
wingrovebuyer and 2 other Property Law Specialists are ready to help you
Customer: replied 4 years ago.


Hello. Sorry I was away for the weekend. In case my husband and I set up the trust and the child is beneficiary than the property income will go on our tax returns and not on her tax return i.e. large proportion of the rental income will go to pay our taxes instead of paying her education. In case we sell/gift the property to her granddad than he can setup the trust for her and the rental income will go on her tax return not ours. Can you please advise if there are any other downsides as we need to choose which way the property goes to the child so she can have a maximum benefit from the property?

Expert:  wingrovebuyer replied 4 years ago.
Hello. Is is really a question for your accountant, but any sale gift or other disposal to your father etc might attract capital gains tax if the equity is over the personal allowance for CGT.