Sadly gifts with reservation can’t have the seven year rule applied. And if you’re not paying rent to live in the house after you give it away then it’s a gift with reservation unless you’ve used some sort of trust.
Family dispute incoming
- Thread starter potatolord
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Soldato
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As bigT says, seven year rule only applies to a true "gift" and HMRC don't consider you living in the property rent-free to qualify as a gift, it's just an attempt at tax evasion
You can put it in a trust but that costs either 20% upfront or 6% setup, every 10 years and another 6% to close it (to get the funds out again), so you could end up paying more than iht
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Soldato
This is why I come to GD. Every twenty years on GD I learn something new
Soldato
It’s like some people in this thread don’t know what communication is, and voicing their feelings to get advice.
That and a bunch of people sitting their high horses comfortable, telling others not to care about their mom, lying to them.
This sort of thing naturally makes someone feel like they are being treated differently, that’s a natural human reaction as I said earlier in the thread.
Soldato
Imagine trying to communicate… these people are so stupid. Doing what he wants to do.. achieves nothing.
Maybe if he talked about it now he’d get some kind of resolution.
People are just.. brainless I feel like.
People can gift money to whom they like. There could be IHT due if they die within 7 years but it will come from the estate, not from her. The money is gone and your revenge idea is stupid.
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Soldato
No you need to do it NOW, not when they are about to croak.
Wtf, so people not have any common sense.
LOL, It WILL NOT go down well if I suggest this to a 70 year old.
Yes, if its a "gift". However, she has been "earning" said funds by doing things like cleaning and looking after siblings. (Not real work, but they justified it as such) and was all paid via BT of which she declared NONE of it.
See, helps to know the whole story eh?
Not really, she does not need to declare gifts at all. Good luck proving to HMRC it was payment for 'work'.
I've got access to all the emails and text's
However, it was more of a sarcastic threat to be fair. I wouldn't actually do it. I'd love for her to audited though, would be highly entertaining.
Man of Honour
You'd have to talk to the wife because I don't do money.
Both my daughters deal with money every day and advise people and what we've done is what it is.
I do know it's in a Trust and we had to pay a fair bit.
Not even a threat though is it, just some imaginary scenario in your head. The money is gone and asking lawyers to claw it back out of her inheritance is just a non starter.I've got access to all the emails and text's
However, it was more of a sarcastic threat to be fair. I wouldn't actually do it. I'd love for her to audited though, would be highly entertaining.
Man of Honour
Quite surprised nobody has replied "but you have no rights to know what your parents are doing with their money" brigade spouting their crap
Soldato
Did you know it's illegal to under-value a house? It's called tax-evasion. I am actually surprised that the solicitor didn't report them, they are duty bound to do so.
Anyway, to the important stuff.
It wasn't your house or your decision what to do with it, and raising it with your mum will not get you anywhere, other than possibly ruining your relationship with her. You can tell her you are disappointed with her decision, but beyond that it's a pointless discussion. Best to just say that one thing and then move on.
By the way, my parents did that too. They left everything to one of four siblings. Yeah, it's *****, but nothing you can do. They have their reasons, even if you don't understand them.
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Soldato
Life is such a drama lol.
Soldato
Yeah, definitely better to avoid any tough conversations in life. Better to be sneaky and do things behind backs or over graves.
Selling a house below market value to a relative is perfectly fine and happens all the time. We have no reason to believe their conveyancer didn't help them through this process and take care of any required formalities (e.g. CGT mentioned previously).
Soldato
- Joined
- 30 Nov 2011
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- 11,376
Yeah that'll be it.