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Hi. I’m a new member although I’ve browsed the board before-thank you for the helpful info! I’ve got a really unusual question and would appreciate some help, even if that help is just being pointed in the right direction to seek further assistance.
My brother in law lives next door to me (we lost my sister several years ago). He is not a blood relative but he is 25 years older than me and we have always been extremely close. As a child, he was like a fantastic uncle to me and now, he is like a grandfather to my children. I am the sole beneficiary of his Will. We have a great set up, in that now he is in his late seventies, I can help him with any care issues.
Some years ago, he gifted me his house. However, we are fully aware that it is/was a gift with reservation and therefore we include it when calculating any IHT liability. He still lives there now and for all intents and purposes, I consider it to be ‘his’ house. He pays no rent.
He has seriously thought about downsizing as the house is far too big for his needs. Plus, he is really anxious at the thought of a large (inheritance) tax bill being payable after his death. He has taken legal advice about the remainder of his assets and has already taken steps to ensure they have been dealt with prudently.
However, he does not want to move away from us and nor do we want him to move away. Being next door works perfectly for us all and we are a very happy family unit, albeit in separate houses. He would not want to live with us.
His house used to be 3 separate cottages with separate titles. When he and my sister bought it, it was made into one house and converted as such. He now lives in what was probably one cottage (ie a third of the house). Can it be separated legally for the purpose of 2/3 of the value being ‘removed’ from the inheritance tax liability in years to come?
The property is worth around £900,000.
Thanks for any guidance in the right direction.
My brother in law lives next door to me (we lost my sister several years ago). He is not a blood relative but he is 25 years older than me and we have always been extremely close. As a child, he was like a fantastic uncle to me and now, he is like a grandfather to my children. I am the sole beneficiary of his Will. We have a great set up, in that now he is in his late seventies, I can help him with any care issues.
Some years ago, he gifted me his house. However, we are fully aware that it is/was a gift with reservation and therefore we include it when calculating any IHT liability. He still lives there now and for all intents and purposes, I consider it to be ‘his’ house. He pays no rent.
He has seriously thought about downsizing as the house is far too big for his needs. Plus, he is really anxious at the thought of a large (inheritance) tax bill being payable after his death. He has taken legal advice about the remainder of his assets and has already taken steps to ensure they have been dealt with prudently.
However, he does not want to move away from us and nor do we want him to move away. Being next door works perfectly for us all and we are a very happy family unit, albeit in separate houses. He would not want to live with us.
His house used to be 3 separate cottages with separate titles. When he and my sister bought it, it was made into one house and converted as such. He now lives in what was probably one cottage (ie a third of the house). Can it be separated legally for the purpose of 2/3 of the value being ‘removed’ from the inheritance tax liability in years to come?
The property is worth around £900,000.
Thanks for any guidance in the right direction.
