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Clare
Clare, Solicitor
Category: Property Law
Satisfied Customers: 34236
Experience:  I have been a solicitor in High Street Practise since 1985 with a wide general experience.
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I want to give my niece my house before I die (to shed any

Resolved Question:

I want to give my niece my house before I die (to shed any responsibility I have for running it) and set up a trust so that my sister, her mum, benefits from any rental income. Is this simple to do? Simpler and cheaper than gifting it? The property in question has been a buy-to-let until recently.
Debbie
Submitted: 11 months ago.
Category: Property Law
Expert:  Clare replied 11 months ago.

Thank you for your question

My name is Clare

I shall do my best to help you but I need some further information first.

Why dod you not wish to give the property directly to your sister?

Customer: replied 11 months ago.
Your question - it would seem the most straight forward thing to do, gift it, but Sam your colleague, tax expert, has tried to help me work out what relief I can get because the property was let out and I have not lived in it for more than 5 years. Owned it since 2001.
Customer: replied 11 months ago.
Willing it seems more straightforward. 20% inheritance tax (for a trust) for anything above the value of £325,000.
Expert:  Clare replied 11 months ago.

What is the value of your assets in total?

Customer: replied 11 months ago.
163;560,000- the house
£40,000 - savings in the bank
£600,000 in total
Expert:  Clare replied 11 months ago.

My apologies - for some reason my answer on this was swallowed by the Ether

If the issue is one of Capital Gains and Inheritance Tax then yes a Trust would be a better option - but it certainly is not simpler than gifting it - nor cheaper.

Setting up a Trust will have it's own Tax implications in terms of annual tax returns - and will also

have relatively expensive legal costs.

However it is posisble that the benefit will indeed outweigh the expense depending of course on what the actual liability for CGT is

Please ask if you need further details

Expert:  Clare replied 11 months ago.

.

Expert:  Clare replied 11 months ago.

.

Customer: replied 11 months ago.
I am thinking it is best to just will it to my niece now and Capital gains tax will reduce as long as I live there as my main residence - for the moment. Then at a later time to gift it to my niece? Or have the deeds changed so her name is ***** ***** it now? Is there any advantage to doing this?
Expert:  Clare replied 11 months ago.

Is your living in the property a real possibility?

Clare and other Property Law Specialists are ready to help you
Customer: replied 11 months ago.
I am actually six months abroad each year; Singapore to look after my mum and in UK working as a live-in carer. I work for the company The Good Care Group, they pay my wages.
Customer: replied 11 months ago.
living there between my job (ī work and live in client's house) and Singapore is technically possible
Expert:  Clare replied 11 months ago.

Absolutely

It is your permanent home - and if you acknowledge it as such - Register to vote there etc then you will be able to claim the CGT allowance after three years and transfer it to your niece then

Customer: replied 11 months ago.
Thank you, ***** ***** what I shall do! Great. Thanks Clare.
Expert:  Clare replied 11 months ago.

You are most welcome I hope all goes well