Its all aquestion of trust (i think)

Its all aquestion of trust (i think)

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My clients are a '40 something' married couple with one child. Mrs X owns two houses neither of which are let. No principle private res election has been made as the facts of the case are that one house is clearly the ppr whilst the other is an occaisional residence. Net of mortgages the properties are worth some £700,000.

The reason Mrs X owns both houses is that both houses have ben acquired in recent years and in the past Mr X was bankrupt. His bankrupcy is now discharged.

Mr and Mrs X are about to re-write their wills and given their wealth wish to use the standard nil rate band trust excercise. (They both have good jobs and will contribute equally to paying off the mortgages).

There is no intention to sell either house,so.......

Should Mrs X gift a half share of each house into tenants in common or gift one house in its entirety? My personal view is that if both properties were in joint names there is more scope for tax planning in the future. Am i missing something here?

Importantly, is there a risk that if Mrs X gifts property to Mr X that the trustee in bankrupcy will make a claim even though Mr X is a discharged bankrupt now.

Thanks for your help with this one!

Stormrider

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By User deleted
29th May 2007 19:28

Thanks but don't worry
Jon

Thank you for your comment. Did it occur to you that just maybe, one is quite aware of ones limits, and how to manage PI liability? Perhaps one may be interested in stimulating some debate on more complex issues over and above the usual humdrum stuff?

The sort of questions that worry me when i read them are placed by individuals who appear to be practicing without the slightest idea of the basics! Would you not agree?

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By Jon Stow
29th May 2007 17:08

Concern
It worries me to see questions like this. Sometimes we have to admit that we do not have the knowledge or experience to advise our clients and need to refer them on to a specialist. Being tenants in common is likely to give more scope for planning, but consult an IHT specialist / STEP member and save your PI policy!

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