Quizzes & Puzzles1 min ago
property after death
My Son lives with us and is 36 years old. when we die does he automaticly get the property as he is a long term resident if we leave it to him in our will and will he have to pay inheritance tax
camber dave
camber dave
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He will get your property (subject to any mortgage) if you leave it in your will to him. Being a long term resident gives him no rights at all.
Whether he will have to pay IHT depends on the value of your property. The current threshold is £325,000 per person. However, that is now transferable. So on your death, I assume you will leave the house to your wife for her life (and vice versa) and on her death she leaves it to your son, there will effectively be a nil rate band of £650,000. So unless your house is worth more than that there should be no IHT.
Whether he will have to pay IHT depends on the value of your property. The current threshold is £325,000 per person. However, that is now transferable. So on your death, I assume you will leave the house to your wife for her life (and vice versa) and on her death she leaves it to your son, there will effectively be a nil rate band of £650,000. So unless your house is worth more than that there should be no IHT.
A few issues/questions here.
The first issue is around the statement "when we die". You need to bear in mind there is a fair chance the mother will outlive the son. You may also find the home needs to be sold at some time to pay care fees so may not be available for inheritance purposes.
Do you own the property- is it fully paid for?
Are there any other children who could claim a share?
Do you live in Scotland or England/Wales?
Liability to CGT depends on the value of the estate. What is the approx value?
The first issue is around the statement "when we die". You need to bear in mind there is a fair chance the mother will outlive the son. You may also find the home needs to be sold at some time to pay care fees so may not be available for inheritance purposes.
Do you own the property- is it fully paid for?
Are there any other children who could claim a share?
Do you live in Scotland or England/Wales?
Liability to CGT depends on the value of the estate. What is the approx value?
Barmaid is much more of an expert than I am but I think you may need to word teh will carrefully to ensure he only gets the property aafter you have both died. You also need to consider what will happen if you need to pay care home fees for you or your wife during your lifetme as it may be necessary to sell the home to raise funds.
Finally, CGT dpends on the total value of the estate not just the house- so if you've got half a million pounds in shares then CGT could be due
Finally, CGT dpends on the total value of the estate not just the house- so if you've got half a million pounds in shares then CGT could be due
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