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I would appreciate some advice, if possible, please.
It’s with regards to inheritance tax and tenants in common.
Context: I am living with my parents, in my 30s. My parents are in their late 60s on pensions. I am blue badge registered (disabled) but my PIP benefits are currently on hold and with DWP tribunal. I am living with my parents due to ill health and am unable to care for myself.
In 2014 my parents gifted me £200,000 (the money came from part of a previous house sale). This money was used, as well as £60,000 from my savings, to give me a 49% share of the house my parents and I purchased and currently live in (mum and dad hold 51% share. There is no mortgage).
The house purchase price was £500,000 (plus all the associated costs etc).
Subsequently mum and dad renovated the house at a cost of over £100,000 (I think around £125,000 - £150,000). This was paid for entirely by mum and dad.
The current house valuation is around £850,000.
My queries are with regards to inheritance tax.
My health is failing and my will is such that my parents inherit my estate after a few bequests.
The queries I have revolve around the fact that I realise that 49% of a £850,000 house is over the nil rate IHT allowance but I believe that my 49% should be diluted due to the significant extra funds my parents invested into the house.
Can I reduce my % in the house legally, without financial repercussions. It’s not a ‘gift’ to my parents but a balancing of the % shares to reflect fairness.
Also, as my parents gave me the £200,000 is is right that it gets taxed with IHT?
Does is change anything that I live with my parents due to disability and they’re pensioners?
Would I have to get the % share changed at a solicitor prior to my death?
Thank you for reading.
It’s with regards to inheritance tax and tenants in common.
Context: I am living with my parents, in my 30s. My parents are in their late 60s on pensions. I am blue badge registered (disabled) but my PIP benefits are currently on hold and with DWP tribunal. I am living with my parents due to ill health and am unable to care for myself.
In 2014 my parents gifted me £200,000 (the money came from part of a previous house sale). This money was used, as well as £60,000 from my savings, to give me a 49% share of the house my parents and I purchased and currently live in (mum and dad hold 51% share. There is no mortgage).
The house purchase price was £500,000 (plus all the associated costs etc).
Subsequently mum and dad renovated the house at a cost of over £100,000 (I think around £125,000 - £150,000). This was paid for entirely by mum and dad.
The current house valuation is around £850,000.
My queries are with regards to inheritance tax.
My health is failing and my will is such that my parents inherit my estate after a few bequests.
The queries I have revolve around the fact that I realise that 49% of a £850,000 house is over the nil rate IHT allowance but I believe that my 49% should be diluted due to the significant extra funds my parents invested into the house.
Can I reduce my % in the house legally, without financial repercussions. It’s not a ‘gift’ to my parents but a balancing of the % shares to reflect fairness.
Also, as my parents gave me the £200,000 is is right that it gets taxed with IHT?
Does is change anything that I live with my parents due to disability and they’re pensioners?
Would I have to get the % share changed at a solicitor prior to my death?
Thank you for reading.
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