Inheriting property with sibling and father to stay on in home

Have been left 50/50 shares in parents PPOR with my brother after mum passed away in 2013 (it was solely in her name), and the Will states that surviving parent Dad can live in the home so long as he continues to up keep and pay outgoings.

So far the property has not been transferred into our names as Dad (executor) is concerned my brother is too young and flaky to be trusted with that big an asset, and there is talk of combining this property in a family trust. Do I understand correctly that a CGT event will occur if transfer to beneficiaries or sale is not completed within 2 years of death? How might this CGT event work? Will the CGT amount need to be paid up front in lump sum? In case of transfer- Not sure I could/would want to have to raise this money, and my brother would have buckleys kicking in anything or even coming up with 50% rates etc. Don't want to sell for the time being as block has excellent location, size and development potential, with dad owning identical sized IP next door and a rezoning just went through. Property bought and held in mums name since 1979 (NSW)- dad has other IP's and investments, and has been contemplating downsizing to something more manageable. Pretty sure the place was owned outright.

I realise a solicitor would probably be helpful, however communication around the issue is a little awkward- if there is nothing we need to do right now happy to let it ride for a while and revisit in next year or so. Dad took care of probate etc and is a great guy but as a family we are on different tangents, and everyone is still pretty broken up over mums death. I personally already have some property and investments, and never really counted on getting anything left to me. I don't really need the money, and from my understanding, putting this in my name may be tipping me into land tax territory anyways, so for the time being I might be better off without transferring it into my name. One thing that would be helpful is being able to loan against to expand my business (Only small say, $50k), however again, not if it means a giant mess/family world war 3 etc- would rather just get loan myself. Can you even loan against something you own with a sibling with living rights still with my dad? Guess I am just after a shopping list of what needs to be looked into to help all parties move forward and work out options when we do see a solicitor ect. Thanks in advance.
 
Your dad as executor should get legal advice asap. Your understanding is not correct.

You will find it hard to get a loan on this property if your dad has a right to occupy - even after transfer.
 
I agree your dad needs to seek advice as a matter of urgency. Terry is a lawyer and I have no idea really except as joint executor for both my parents I know we had a legal obligation to do as the will said. If your mother passed away in 2013 I think your father could be putting himself at risk if he is stalling the movement of the property into the ownership requested in the will, regardless of possibly very good reason.

I also understand from what you say that your brother might not handle the asset well but that doesn't mean your father can stall.

And can I also give my condolence on the loss of your mother. It is a difficult enough time without added complications... and we had a lot of complications with a resulting legal fight from my dropkick brother... so I do empathise.
 
Hey Wylie

Thanks for the kind words, have bitten the bullet and spoken to dad, and ha has agreed to follow up- you are right, nothing like a PITA brother in the mix!

Cheers
 
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