IHT

[musty]

I wish to gift a buy to let property to my two daughters, both of whom are married, and hopefully in the future the gift will qualify as a successful PET.
Is there any way in which I can structure the gift to preclude the risk of a successful claim of a share of the property by the spouse of either daughter should they divorce.

[AdamS93]

Your question, isn't for an accountant unfortunately. You need to see a solicitor.

Off topic - IHT shouldn't be your main immediate concern. There will most probably be a immediate capital gains tax liability due on transfer.

[maths]

Is there any way in which I can structure the gift to preclude the risk of a successful claim of a share of the property by the spouse of either daughter should they divorce.

I'm unaware of one.

I assume no mortgage.

You could, as presumably the legal owner, execute a declaration of trust in favour of two daughters 50/50. This trust would not be known to their spouses as such a declaration does not require to be filed anywhere; hence, not public knowledge.

If say one daughter intimated that she might be divorcing you could execute a new declaration cutting that daughter out of the trust.

If the property produces rental income this would require a tax return to be filed. To avoid the daughters having to file you could for example execute a Declaration, say, 49/49/2 with you owning the 2% and under the Declaration it is agreed that you are entitled to all the rental income and hence only you would need to file a tax return.

[AGoodman]

No, not really. Judges have wide discretions to vary trusts and other arrangements for a reason.

The fact it is a gift and jointly owned with sister would help on a divorce, as may (but less so) a co-ownership agreement that they will only sell with mutual consent.