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Question regarding children buying share in family home

Discussion in 'Business, Investment and Economics' started by sptrawler, Aug 16, 2014.

  1. sptrawler

    sptrawler

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    If I wanted to sell a third share of our family home to one of my children, what legal charges would be incurred, other than State Government stamp duty?
     
  2. burglar

    burglar

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    Forgive me if I say it sounds weird.

    While it is your family home, it is exempt from CGT.
    I would want to know what the Taxman thinks.
     
  3. sptrawler

    sptrawler

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    That is exactly what I'm asking.
     
  4. skyQuake

    skyQuake

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    Look up joint tenancy and tenancy in common

    Alternately you can have the property owned through a trust, and you and whoever else you want can be beneficial holders of said trust. But you lose out on the 'family home' benefits. Seems like a lot of work to make it all work though.
     
  5. sptrawler

    sptrawler

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    Yes it would be joint tenancy, so they inherited the property.
    I suppose I should expand a little.
    The child is handicapped but lives individually, the time is approaching where they will need to move into our house.
    We are thinking of extending the house to accomodate and put the child on the title, therefore if we pass away they aren't left homeless.
     
  6. skyQuake

    skyQuake

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    Ok cool, so you're already familiar with joint tenancy. Its been a while now but im pretty certain that there is no actual transfer in ownership, so there are no taxes payable.
     
  7. pinkboy

    pinkboy

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    Doing this is unnecessary. It's time consuming, messy and costly. Why not complete the construction to accommodate and have a comprehensive will created and put in place? It achieves the same thing at a fraction of the price now and in the future.

    Doing anything JV has so many complications. Each party has to consider the opposing party's position on death, divorce, incapacity, bankruptcy, exit strategy etc.

    pinkboy
     
  8. sptrawler

    sptrawler

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    The problem with that is, upon our death, the house will have to be sold within two years or capital gains is payable.
    But as you say it would be the easier way.
     
  9. burglar

    burglar

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    What do the children say?
     
  10. sptrawler

    sptrawler

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    Haven't run it past the other kids yet, just trying to correlate all the facts to see if it is viable.

    One step at a time, stuff.
     
  11. banco

    banco

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    It's been years since I did wills at law school but why not just give them a larger slice of the estate than the other kids? I'm struggling to see the benefits of the arrangement you've suggested given we don't have an inheritance tax. It's possible you could have a provision in the will that said that your child should be permitted to remain in the house rent free until the estate is liquidated. Given how long probate takes they'd have months to find alternative accommodation.
     
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