Re: Pooling funds with mother-in-law to buy a house - tax implications?
- From: Ronald Raygun <no.spam@xxxxxxxxxxxxxxxxxxxxx>
- Date: Tue, 29 Apr 2008 09:45:51 GMT
RobertL wrote:
On Apr 28, 3:00 pm, "Anthony R. Gold" <not-for-m...@xxxxxxxxxx> wrote:
On Sun, 27 Apr 2008 10:30:28 -0700 (PDT), Juan Kerr
<juan.k...@xxxxxxxxxxxxxx> wrote:
Mother-in-law sells her house. We sell our house. We pool the money.
We move to sunny Devon (ha!) and buy a nice, big detached house with a
bit of land out the back and build a granny flat at the bottom of the
garden.
Andy pointed out that as long as she owns the new property in
proportion to her contribution then there is no tax implication. But
what if she sells her house and gifts the money to the children who
then buy a big house where they all live?
This would avoid inheritance tax if she lives a further 7 years, and
would make matters no worse if she died within that time. Is that
correct?
Unfortunately not. If when she gifts the money to the children there
is an understanding that they will let her live rent-free in the new
big house, then it would be deemed a gift with reservation, so IHT
would not be avoided even if she did survive 7 years.
.
- Follow-Ups:
- Re: Pooling funds with mother-in-law to buy a house - tax implications?
- From: google@xxxxxxxxxxxxx
- Re: Pooling funds with mother-in-law to buy a house - tax implications?
- References:
- Prev by Date: "Change your language and you change your thoughts."
- Next by Date: Re: Mortgage best buys and likely changes in market
- Previous by thread: Re: Pooling funds with mother-in-law to buy a house - tax implications?
- Next by thread: Re: Pooling funds with mother-in-law to buy a house - tax implications?
- Index(es):
Relevant Pages
|
|
