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Where Taxpayers and Advisers Meet

Taxes on appointment out of trust

Wobble
Posts:1
Joined:Tue Aug 15, 2017 10:26 am
Taxes on appointment out of trust

Postby Wobble » Tue Aug 15, 2017 7:46 pm

I apologise in advance for my ignorance of Trust matters. Apart from that I am generally fairly intelligent and capable of holding down a job. Parent 1 passed in 2014. Will seemed fairly straight forward, probate was applied for and granted very quickly. Estate was half of family home, which was held as tenants in common, and account/savings. Came to about 221k.

Parent 2 put all monies into their name and carried on living in family home. As offspring I was only other beneficiary. On raising subject of title of house recently, I suggested to Parent 2 who had thought the half property would have been automatically transferred in to my name by the authorities on receipt of will, probate, that it had to be done by exec's of will (Parent 2 and I). Went to see local solicitor firm who asked to see original will, probate etc. Parent 2 then gets letter advising that, as a result of a Discretionary Trust being in the will, the half was not AUTOMATICALLY inherited by me, but that as Trustees, exec's and beneficiaries, we would have to agree this.

Suggested simple Deed of Appointment to a) make it clear that half property was to be held in Trust and rest of estate went to Parent 2 at time of death. Another DOA to say that we had agreed the half share was to be appointed to me and the Trust was therefore dissolved.

She said that was all we needed to do, but on receiving the updated deeds, that LR has suggested the value of the half is about £30k more now than when probate was done. Reasonable enough to assume property values have gone up. I presume they used their own valuation?

Parent 2 continues to live in house, House will never be sold. If I die before Parent 2, they will carry on living there. If Parent dies first, I will sell my flat and move in to family house. Can someone kindly give me some idea of what liabilities I/we are exposed to? Parent 2 isn't concerned but I am as I have done a lot of reading up as much as I can, and am worried about what I have to do and/or when. I don't want Parent 2 worried if I can help it. Appreciate any advice/pointers. Online no-one can hear you scream...... :(

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