Postby nvmof3 » Mon Feb 04, 2019 6:29 am
My parents generously bought a house for a couple who helped them in their house and garden and cared for my father when he was terminally ill. They bought it on the understanding that when the couple died, they would leave it to my siblings and me to sell. Since then the relationship between my mother and them has soured somewhat although I still keep in touch with them.
I wanted to formalise the arrangement legally and as I see it, we have two options.
1) transfer the property into our names and grant them the right to live there rent free until the last one of them dies
2) come up with some sort of legally binding will that they cannot change without our consent.
In Option 1 my siblings and I become second home owners which I think has tax implications were we to sell and buy our main home. Also, are they allowed to just gift us a house or does that trigger a tax?
In Option 2, if such a will exists, what are the inheritance tax issues?
I’d be grateful for opinions or suggestions of people to talk to to figure this out.
Thank you!