Property Inheritance Queries

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bambam

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Perhaps someone could clarify the following for my friend.

Her widowed father is terminally ill. He is talking about transferring his properties to his two daughters. What are the tax implications if the houses are transferred prior to her father passing .v .inheritance tax.

Also she is concerned that her elder sister will force the sale of the properties. What happens in this situation if
(a) they are transferred prior to his demise
(b) they are inherited after his passing - does the executor mediateis in this situation.

She isn't in a position to buy out.

The family have a civil, but not close relationship. She is afraid of additional stress at what is already a stressful time. She is also unsure of her rights - elder sister is the sharper tool in the box.

Thanks
 
Check thresholds - currently 250K before CAT.

Transfer now - pay stamp duty and legal fees.

Wait 'til after - pay for Probate and legal fees, no stamp duty

"Also she is concerned that her elder sister will force the sale of the properties."

What does this mean? That all ( how many?) properties would be held in joint names? Why would he do this if it's clear there will be problems? Why not give properties individually to family members? Or bequeath them on death? No dispute then.

mf
 
My understanding is the three properties are not of equal value - hence the properties will be bequeathed or gifted jointly.

I don't think that the father is fully aware of the relationship between his daughters - they have been careful to put on a 'united front' for their Dad. My friend would rather hang onto the properties - for her own reason not sure I understand why - but she does. She doesn't want to be forced to sell but isn't sure if her sister can legally force the sale considering that she doesn't have the funds to buy out the properties.

I know - it's a mess in the making.

Thanks for answering the tax implications.
 
So your friend does not want the 3 properties sold. Why?

Isn't it awful to be fighting over property before the Dad is dead. Aren't there more important things to be thinking about than outdoing one another.

The other sister can not force a sale. Sounds like the best solution would be for the Dad to leave the properties to the 2 daughters and let them fight about it after he is dead.
 
There is no fighting - yet. There has been a discussion by their dad of gifting the properties before his death rather than bequeathing them. She doesn't know which is best from her perspective. She doesn't want to sell - I don't know why my guess is that she isn't in that frame of mind because her father is still alive - which I guess is where the concern that the sister might try to force a sale comes from.

I reckon she asked me what I know about it as she is focused on her father - I don't know anything about these things which is why I came here.

So thank you for replying but I guess she is thinking about the more important things ie her father and is trying to avoid a confrontational situation after the fact. Her preference would be not to have joint ownership gifted before her fathers demise. My guess is that her sister will get her way after the fact.
 
Well what rights do 2 siblings (with a bad interpersonal relationship) have over each other in the case where they have joint ownership of the family home ? Can one move in and change the locks or claim the lock was ''broken'' and deny a copy of the key to another ? If one moves in can they take over the whole house and all the rooms ? If one independently moves expensive furniture from the house does the other have any comeback ? Can half the house be sold and rented out without the consent of the other ? If so then how does one decide which half etc ? Joint ownership forced upon unwilling participants sounds possibly complicated and messy.
 
Wow. What a mess. My sympathies to your friend.

What I would suggest is that the father make a Will that makes an impartial third party (with no particular ties to either sister) the executor of the Will. It could be the family solicitor for example, or a trusted family friend. That could go a long way towards making sure that one sibling does not take advantage of the other, as nothing happens without the executors say so.

What are the properties...the family home, commercial properties, holiday homes, rental properties? I think that your friend is being unreasonable wanting to hang onto all 3 of them, unless she has a very good reason to do so. Unless there is a specific reason to want to hang onto them, such as she runs a business out of one of them, or she wants to save a family or a holiday home for future generations of the family, why keep all 3? Does she plan on renting some of them out? Does she want to wait a few years and wait for property prices to go back up before selling them?

If her sister inherits a 50% share in 3 properties, I do not think that she is being unreasonable in wanting to see a financial gain from the estate in some shape or form. Why should she be forced to be a landlord, or wait years for her share of their inheritance if she doesn't want to?
 
Thanks for all the replies - from an official perspective I think I have some direction her. Thank you.

From a logical perspective I am also at a loss as to her motivation. Thanks again for the replies.
 
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