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Property being purchased in Children's names
Please could you help. I would like to buy a property (in cash) to let. The property would be owned by my children (aged 12 and 15 who already own £15k each through other sources. Is the best approach to set up a company of which I am a director, with my children as the shareholders. I wouldn't take a salary as a director and I am happy to lose control of the property when the children are 18. Or would a bare trust be better?
Re: Property being purchased in Children's names
Company route probably not the best option.
Bare trusts are simple and involve little administration.
If you're happy for minors to take income/capital at age 18 then no drawback re use of bare trusts.
Rental income will be subject to income tax on your part at your rates but tax paid can be reimbursed from the trust.
Other options might be a discretionary trust or interest in possession trust.
Bare trusts are simple and involve little administration.
If you're happy for minors to take income/capital at age 18 then no drawback re use of bare trusts.
Rental income will be subject to income tax on your part at your rates but tax paid can be reimbursed from the trust.
Other options might be a discretionary trust or interest in possession trust.
