I am dealing with the estate of my Father who recently passed away. Everything will go to my mother, but how I deal with a GWROB now will influence how I deal with my mother’s estate when she eventually goes.
About 17 years ago my parents invested about £50k in a property with my brother to run as a buy to let. It was a 50% share. The property is only registered in my brothers name, but there is a family understanding that 50% of the property belongs to my parents and they have been receiving 50% of the net rental income for the last 17 years. (And declaring for income tax purposes). My mother will want to keep receiving the 50% income, especially now my fathers pension payments have reduced. There was no mortgage at the time of purchase. When my mother eventually goes, my brother understands that his share of the estate will be partly paid as him receiving total ownership of the property at whatever 50% of current market rates will be.
I am not trying to hide the asset , but want to know whether I should treat it as though it is tenants in common, even though there is no paperwork supporting this or a GWROB?. Would my parents 50% share be jointly owned? If it is a GWROB, would the value be the original £50k or 50% of current market value?
I am just trying to work out where on my IHT205 Form I record the asset.
Thanks
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