.png)
.png)
Inheritance tax implications of a gift of money and the receipt of rent-free housing
Margaret and James are married and aged 66 and 70 respectively. Their total estate is worth about £2m. They are based in the UK and their only child Sam is 26.
Their only residence is worth about £1.25m. They would like to sell this and move nearer to their son (in the UK) and live in a property worth about £750 000.
Sam is also UK-based but does not own a house at present having always lived in rented accommodation. It has been suggested that they gift him £750 000 and he would use that money to buy the new property in his name.
This would be his main residence and he would allow his parents to live with him rent-free granting them no lease or security of tenure.
In the parents’ minds the £750 000 would be a gift to Sam and the...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
