Land/property inherited by 6 siblings?

D

db1

Guest
Looking for a few questions to be answered please.


Background:
A widower father has died with a house and a parcel of land to be equally divided among 6 children (all aged over 21, none of whom live at home).
The 6 kids all agree that they want the family home to be kept, as a base for family gettogethers, as a retreat, etc.
Parcel of land to kept for the next few years, but could be sold in the future.

Qstns:
1. Can the house (and site) be transferred to 6 joint owners?
2. Can the land parcel be transferred to 6 joint owners? It'd be very hard to divide the land in 6 due to varying quality/roadfrontage/etc.
3. Does stamp duty need to be paid on both house(and site) and the land by the 6 new owners?
4. Do both the house and the land need to be valued immediately in case of sale in the future (for the purpose of future capital gains tax calculations).
 
1. Yes.
2. Yes ( isn't this the same question as number 1? )
3. No stamp duty on an inheritance.
4.The house and land must be valued at date of death and at the valuation date if that is a different date.

Having said that, in my opinion putting property in 6 names is likely to lead to trouble down the line, but that is your own business.
 
Oh sounds messy... I was in kinda the same situation six siblings. But all property lent itself to been devided up... Six owners sounds nice in theory but think of the medium long term... Who pays for the up keep. Will anyone be living there... What if three want to renovate it but the other three don't or can't afford too... MESSY..
 
Vanilla said:
1. Yes.
2. Yes ( isn't this the same question as number 1? )
3. No stamp duty on an inheritance.
4.The house and land must be valued at date of death and at the valuation date if that is a different date.

Having said that, in my opinion putting property in 6 names is likely to lead to trouble down the line, but that is your own business.
Click to expand...

Thanks. I guessed Q2 would be the same as Q1 but I included Q2 separately in case there was some law where land has to be split up between all the inheritors (as is the case in some countries) which is more possible with a land bank than with a house and small site.

Siblings all get along and are happy to pay their fair share of the upkeep. I guess the big decisions will occur when the first person wants to liquify some or all of their share. From hearing of other people's dealings, most trouble is usually instigated by the partners of the siblings.
 
lucozade said:
Oh sounds messy... I was in kinda the same situation six siblings. But all property lent itself to been devided up... Six owners sounds nice in theory but think of the medium long term... Who pays for the up keep. Will anyone be living there... What if three want to renovate it but the other three don't or can't afford too... MESSY..
Click to expand...

Thanks for raising those issues. I just wonder if it's impossible to divide up land equally when there's such differences in quality, aspect, slope, drainage, and road frontage.
 
can any one advise me, which would be the better option re tax etc. my mam i to gift me a site of land ( less than an acre) with the intention of selling it on as i have no intention to build on it. or for her to sell it herself and give me the money. the land was worth 15 k when she accuired it but now probably only has a value of 7k - so techniciall there is "no gain" in regards to tax implications. has any one any adivse? thanks
 
It is better that she sell it and give you the money. That way, she can use the capital loss she made on the disposal against any future gains, whereas if she transfers it to you first, then she can only use that loss against future gains on other assets she transfers to you.
 
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