can she give second property away

[villageben]

My mother and father both left home some twenty years ago and left me in their first home . They bought a second one. Six years ago my father died and both properties passed to my mother. My only brother has his own house and she wants to give me
the house I have lived in for some 25 years. I have maintained the property throughout.
Will she be liable to CGT ?
My house has a value of approx £80,000
Hers approx £120,000. She has probably £30,000
in assets .
If property values rise and she becomes liable for Inheritance Tax ( going above £255,000 )
Can we avoid this in anyway ?

[Nigel Lord]

villageben

Your mother faces a potential CGT liability, although the quantum would depend on circumstance (e.g. how long did your parents live in the property, wass it jointly owned etc.).

It would be possible to use a discretionary trust arrangement to transfer to property to you and to eliminate the CGT liability. The cost would be approximately £1,250, and the process would take about 6 months. You should seek professional advice.

At present your mother has no IHT problem, but this could change if property prices continue to rise. The trust route would help eliminate some potential exposure depending on how long your mother survives.

If you require any further assistance please do not hesitate to contact us, and we will be happy to act on your behalf.

Nigel Lord
Lord Associates
Taxation & Business Consultants
Caxton House
Old Station Road
Loughton
Essex, IG10 4PE
020 8418 9101 & 07769 931852
mail@lordassociates.co.uk