Shared Family Home

[LN]

My Brother and I share a large house with our elderly parents. The house was partly bought with money left to my brother and myself by grandparents many years ago, but we are not named on the deeds.
We are now concerned that when our parents die we may not be able to pay the inheritance tax, and could lose the family home.
How can the family minimise the tax liability, and what should we do to get our investment/share in the house from our previous inheritance recognised?

[Nigel Lord]

LN

The first obvious action is to establish whether you and your brother have a beneficial interest in the property (the legal title is irrelevant here).

As you and you brother live with your parents, it will be possible for them to gift a proportion of the property to you. Providing their wills are suitably drafted, and the second death is more than 7 years in the future, it would be possible to eliminate a substantial part of the property's value with a simple planning strategy (£765,000 plus).

You really do need to take professional advice.

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