Hi all,
I have an enquiry about the legality and moreso the accounting and tax implications regarding a scenario.
I would like to invest in a property. I shall fully fund it myself and have the loan completely under my name. However, i would like to share the property with a parent – say having her name on the deed 50/50% share.
In the event that if the parent were to pass away. How will her share be treated? Is there a way to write a will stating that in that event all 50% share of the property will hence be passed back to me? (Since i shall be responsible for financing the whole property anyway) – i do have sbilings but the intention is to buy my parent a place – n not be forced to split it among siblings after the death.
What are the tax implications – after the death. Is there any inheritance tax issues i would have to pay immediately upon receiving the 50% share back? Is there a huge CGT issue if i were to then sell the property?
Or is there a way to minimise that – that is if i were to inherit that property back – and i do not sell but keep it only as an IP and receive rent as per usual. Hold it for many more years to come – before selling will i be "part" CGT exempt?
Many thanks in advance and your input would be greatly appreciated.
If you buy it as tenants in common her share automatically goes to you. ASSUMING your siblings don't contest it. She can say it in her will that she leaves it to you. But still a risk. What are the siblings like?
We don't have inheritance tax in Australia (ATM).
Why do you want to put it in half your mum's name? This will also affect her pension (if she's on one). Will she be living in it? If so and you don't charge her market rent you will have problems trying to claim tax losses.
Yes you will pay CGT. If your mum lives in it, not on her half for that time I think (check with an accountant).
Personally I don't think it's a good idea.
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