Will query - consideration

Discussion in 'Wills, inheritances and gifts' started by Livingston, 22 Oct 2018.

  1. Livingston

    Livingston New Member

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    3
    Hello all,

    Longer time lurker, first time poster. Apologies if the questions are a bit vague.

    In relation to an inheritance, what does it mean "to provide consideration"?

    To give some background - in her Will, wife left the house to her husband. Wife died and husband inherited house. Husband subsequently wrote own Will, leaving house to son. However 24 years prior to his death (transfer was in 1994, death in 2018), the father transferred the house to the son.

    In relation to Probate, the question is being asked "did the son provide consideration"?

    Is there likely to be a tax liability from the time of the original transfer?

    Thanks for any pointers.

    L.
     
  2. Protocol

    Protocol Frequent Poster

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    2,779
    AFAIK, in this context it means, did the son provide anything in return for the house being transferred to him in 1994.
     
  3. Livingston

    Livingston New Member

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    3
    Ah... grand. A "granny-flat" was built - so this is the consideration. Thanks a million!
     
  4. mf1

    mf1 Frequent Poster

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    4,082
    Is this about Capital Acquisitions Tax?

    As in, what was the value of the house when it was transferred to the son? And did he pay anything for it ( as in "provide consideration") which would reduce the value of the gift ? If gift there was?

    mf
     
  5. Livingston

    Livingston New Member

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    3
    We've been trying to remember but the value of the house in 1994 was probably around £50k. A mortgage of £30k was taken out to build the flat.