I am looking at tax efficient ways for children to inherit an investment property that is currently rented.
I understand (hopefully correctly) that in a rising property market, one mechanism is for the parent to sell the property at an adjusted market value to the child but maintaining a lifetime interest in the income from the property. I understand that this will be done as any conveyancy transaction and deeds transferred to child.
My question is around who is liable for initial & maintenance costs:
- who will be legally responsible for costs to maintain the property e.g. if roof repairs are required before parent dies? is this the child who is the owner or the parent with the lifetime interest?
- likewise, the parent wishes to keep control of letting & tenant selection etc.. what is the default position for this with the lifetime interest approach? if the default is the child (owner) has control, how could it be arranged that this legally stays with the parent (lifetime interest)?
Are there any good articles available?
Many thanks
I understand (hopefully correctly) that in a rising property market, one mechanism is for the parent to sell the property at an adjusted market value to the child but maintaining a lifetime interest in the income from the property. I understand that this will be done as any conveyancy transaction and deeds transferred to child.
My question is around who is liable for initial & maintenance costs:
- who will be legally responsible for costs to maintain the property e.g. if roof repairs are required before parent dies? is this the child who is the owner or the parent with the lifetime interest?
- likewise, the parent wishes to keep control of letting & tenant selection etc.. what is the default position for this with the lifetime interest approach? if the default is the child (owner) has control, how could it be arranged that this legally stays with the parent (lifetime interest)?
Are there any good articles available?
Many thanks