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huskyman1 | 16:22 Sat 28th Nov 2020 | Law
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Hi put a post up about transfer of equity were my brother gifted me the house as we could not get joint mortgage and he could,nt buy me out.
In a few years time i will sell the house for a profit and share this with my brother.
Is there anyway i can put something in writing to say this is the case, and if i had to die how would i leave house to brother and a close friend my life insurance would pay of the mortgage but unsure how to to this.
Any advice would be helpfull is the above situation possible if i write a will or is there a simpler answer.
Thanks in advance for any info giving.


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The second part of your question is he easy part, if you die whilst still living in and owning the house you need a Will. If these 2 people are the only 2 heirs you need to think about how you want to divide it.
If you want to share it equally, just say you leave x & y 50% each. You can vary the percentages in any way you want. If you want to pay your brother back with a fixed amount, you bequeath him that amount with the residue to the friend.
The first half is not so straightforward. technically if you sell it you may be liable to Capital gains tax on the profit of the share he gifted you, dependent of the the tax threshold and the time lapsed since the gift. Also if at a later date you need to go into a Care Home, they may decide that by giving him the money you have deprived yourself of an asset. (Your age now will play a part in that).
You really need professional advice on this, it is almost as if he has loaned you his share of the house with repayment due at a later date.
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Hi Thanks for this will look at making a will brother does,nt want any money back on house am free to do what i want with it i was just thinking if i sell it i could give him something there is only 25 thousand equity in it think i will just leave him something in my will to make life easier. Thanks for your advice
you need prof advice
ubasses is partly right as it depends on who is resident.

I did this wiv my nephew. He lived and I er paid. renty and all that sort of thing. Transfer of equity was easy - you do it by letter or any other document. BUT I didnt change title at the land registry and I was advised the tax man might make difficulties, on my nephews sale.

Altho Barmaid here accurately predicted what the taxman would decide. (title had been transferred.] - but I had not made a CGT payment at the time of transfer NOT at the time of sale - ooer Mrs!

You will notice that CGT at time of transfer is gonna be much much less than at time of sale ( by a few hundred thousand actually)

so yes you can do this
it can be VERY tax efficient
but you have to be careful
good luck

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