Value jointly-owned properties when gift giving

30 April 2010



Parents with a stake in their children's property should get it valued if they intend on leaving it to them as a gift in their will, a Guardian adviser has revealed. Virginia Wallis said that for inheritance tax purposes, the shares in the house will count as being exempt, providing the parents do not die within seven years of listing this in their wishes.

If a person does not get round to making these arrangements, the value of the gift will then be added to the estate and will therefore become vulnerable to inheritance tax. Should the child still be living in the property, it is important for it to still be valued as this will also be taken into account when it comes to capital gains tax, Ms Wallis explained.

Having official paperwork to hand is of utmost importance as the executors of the will shall need this in the event of a person's death. Failing to do so could slow down the process of dividing assets.

Christine Moore, associate in the wills, trusts and probate team, comments: "When someone dies the value of the assets they own (including their share of those owned in joint names) have to be valued at the price they might reasonably expect to fetch on the open market. In addition any gifts made within seven years of the date of death potentially become chargeable, where the value on which inheritance tax is based is the value at the date of the gift and not the date of death."

If you require legal advice, for either your private affairs or organisation, please call Buckinghamshire based B P Collins Solicitors on 01753 889995, complete the online enquiry form or email enquiries@bpcollins.co.uk.

Posted by Christine Moore

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