Where there is a will...

[Aspiring]

Can anyone please shed some light on the possible tax (or other)implications of the following scenario:

1. A elderly mother with two adult daughters has willed her residence to her daughters 50\50. It has been her residence for many years.

2. The most likely scenario on the mothers death is that daughter A will reside there and buy daughter B's share.

3. If all parties agree to the property being valued now with daughter A buying out daughter B now prior to the mothers death.

Basically looking at an off-market transaction at market value and trying to be fair to all but unsure of any tax consequences..

Looking forward to enlightment!

 

[Jas]

The important point is the the daughters don't own the title to the property...

The implications are big. the daugher could give each other the money and ask the mother to change the will.

You could use options...

Go talk to a lawyer and accountant.

Jas

 

[NigelW]

Jas is right.

I think there should be no CGT if it is sold within 2 yrs of mother's death - but confirm that with your acct.

N.

Originally posted by Aspiring
Can anyone please shed some light on the possible tax (or other)implications of the following scenario:

1. A elderly mother with two adult daughters has willed her residence to her daughters 50\50. It has been her residence for many years.

2. The most likely scenario on the mothers death is that daughter A will reside there and buy daughter B's share.

3. If all parties agree to the property being valued now with daughter A buying out daughter B now prior to the mothers death.

Basically looking at an off-market transaction at market value and trying to be fair to all but unsure of any tax consequences..

Looking forward to enlightment!