My mother has Willed her house to me (she is a widow). She is quite unwell now and I am trying to prepare my mind for upcoming eventualities.
My sister has had a change in circumstances. Assuming I inherit the house, as per the Will, I would like to offer it to my sister to live in, indefinitely.
Then, upon my sister's demise, the property would return to me and my family. She has expressed great interest in this proposed arrangement.
The house is not in great shape and there are structural issues. There's no central heating... no shower and so on. It hasn't been updated in decades. The house is probably worth about 80k. I think it would be worth about 110k if the issues were fixed and it was modernized. As it stands, I don't think anyone would rent it. But family would be ok with it, if that makes sense. The plan would be, that my sister can do what she wants with the house, to make it livable for her for her lifetime. She wouldn't have the funds at all to buy the house ( I wouldn't feel right selling it to her), or any house or even rent any place at the moment. And I am interested in keeping the house in my family.
(I will go to an accountant and solicitor when the time comes to put an agreement on paper).
The question I have is, what are the tax implications for me and my sister? Do I need to become a landlord? Does anyone have informal advise on a tax efficient way to make this happen? i.e. she can live in the house I inherited.
My sister has had a change in circumstances. Assuming I inherit the house, as per the Will, I would like to offer it to my sister to live in, indefinitely.
Then, upon my sister's demise, the property would return to me and my family. She has expressed great interest in this proposed arrangement.
The house is not in great shape and there are structural issues. There's no central heating... no shower and so on. It hasn't been updated in decades. The house is probably worth about 80k. I think it would be worth about 110k if the issues were fixed and it was modernized. As it stands, I don't think anyone would rent it. But family would be ok with it, if that makes sense. The plan would be, that my sister can do what she wants with the house, to make it livable for her for her lifetime. She wouldn't have the funds at all to buy the house ( I wouldn't feel right selling it to her), or any house or even rent any place at the moment. And I am interested in keeping the house in my family.
(I will go to an accountant and solicitor when the time comes to put an agreement on paper).
The question I have is, what are the tax implications for me and my sister? Do I need to become a landlord? Does anyone have informal advise on a tax efficient way to make this happen? i.e. she can live in the house I inherited.