Transfer of ownership

Discussion in 'Wills, inheritances and gifts' started by Zelda1959, Sep 17, 2018.

  1. Zelda1959

    Zelda1959 Registered User

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    I am a recent widow and have sold my house down the country and moved back into the family home. My parents are dead and it was left 1/6 to me and 5/6 to my brother. He is single and neither of us have children. We both want to stay in the house until we die. I am planning on spending my money doing it up.

    I would like more security such as buying an extra share of the house but think this would involve CAT. Is there any other way I could ensure security of residence. We want to leave the property to each other if either of us dies. I am 59 and my brother 52.
     
  2. mf1

    mf1 Frequent Poster

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    4,075
    Does not sound like much of a problem. Both of you seem to be in agreement.

    Go and see a solicitor. If you were happy with the last one you used, go back to them. Or to the solicitors who handled your parents' probate.

    Your brother will need separate representation.

    Do not spend any money on the property until you have a legally binding agreement in place.

    mf
     
  3. Zelda1959

    Zelda1959 Registered User

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    The main concern I have is if we got joint ownership would there be further CAT to pay if my brother died.
     
  4. mf1

    mf1 Frequent Poster

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    By agreement between you, you could create a Right of Residence in your favour which would not change the ownership but would give you security.

    On your brothers death, if he leaves the house to you, you will, probably/possibly, have a CAT liability.

    If he leaves his share of the house to someone else, you will, probably/possibly, have a CAT liability. But you will have security.

    You need proper legal and tax advice, specific to your circumstances, to properly understand your position.

    mf
     
    RedOnion likes this.
  5. Zelda1959

    Zelda1959 Registered User

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    Thanks so much, what is a Right of Residence?
     
  6. Vanessa

    Vanessa Frequent Poster

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    I understand that it is a legally binding agreement which gives a party the right of residence in a property. Often the time frame would be until such party married or in other cases for their life.
    If it is registered with the Land Registry the property cannot be sold without the party's consent.
    At present while you own a one sixth share the other owner could get a court order to sell the property and get his share.
    I would advise that you get good legal advice to secure your position as a verbal agreement is useless.
    Also either of you could change your will and leave your share to someone elsr
     
  7. Zelda1959

    Zelda1959 Registered User

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    I will, the whole thing had become a nightmare, I am so stressed about it. I think ideally I would be better getting it changed into a joint tenancy and paying the tax.
     
  8. Zelda1959

    Zelda1959 Registered User

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    Just wanted to say thanks to those kind folks who have replied