Transferring Property

D

deborahMeade

Registered User
Messages
4
Hi,

My mam was involved with her brothers in business quite a few years ago. Due to family fueding over money etc the parent company is coming to an end. After years my mums brother, the head guy is giving my mam one of the properties.

My mam has to pay the taxes to get it into her name which is going to involve us having to get loans out to pay. However, we were wondering what is the best way to get it into all our names(our mam and us siblings).

Would it be best to setup a company and have my mam as the main shareholder and the rest of us minor shareholders. The reason I ask is that if godforbid anything happens when it comes into our name we will have to pay inheritance tax again. Thus, would it be best if we did this rather than it go into our mams name now and then again into ours at a later stage.

Before you ask, I'm not a scheming little so and so, she is asking these questions.

Would anyone have any ideas on the best way to go about this?

Thanks in advance.
 
deborahMeade said:
Thus, would it be best if we did this rather than it go into our mams name now and then again into ours at a later stage.
Click to expand...

I would say this is probably the best option, but you are best getting the opinion of an accountant / estate planner to do it correctly
 

As a general rule, it's a bad idea to own a property through a company. If the property is disposed of by the company, CGT should arise on any gain. Tax should then arise again in relation to the extraction of the proceeeds by the shareholders (this could be CGT if the company's liquidated or income tax plus the add ons if it's dividends). In other words a double hit of tax and a much higher effective rate.

Speak with a tax consultant.
 
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