Deed of Variation or Gift or Trust

[Nysinyd]

Hi everyone. I inherited 2 properties, I in 2013 and 1 in 2015. The first property has a lifetime tenant in so cannot be currently sold but I have recently sold the second property following probate and am in a dilemma as to what to do with the proceeds. I also have 4 buy to let properties which are all mortgaged but could comfortably pay 3 of them off with the proceeds of sale from the second inherited property At the same time I also wish to protect all this for the benefit of my two daughters. My query is do I do a Deed of Variation for the second property (No IHT and sale value £170k) to my adult children and then they can buy 3 of the btl properties at around market value and set up a company to take advantage of the lower CT benefits. Or do I simply pay off the mortgages on the properties and gift them to my daughters and put them into a trust? Grateful for any advice given

[Lee Young]

If you intend making gifts then doing the deed of variation will be beneficial if only because it means those gifts wont give rise to inheritance tax if you were to die within 7 years.