I have a case under the following circumstances:-
Property gifted into trust by grandmother to son and wife to hold as trustees for grandchildren when they reach 21 years old. this was in 1995.
Title of property was transferred to trustees upon signing the trust in 1995
declaration signed (by trustees) in 1995 to confirm arrangement that grandmother can remain in property with no rent until death or voluntary vacation.
grandmother has now passed away
Value of total estate less than 325k so I understand IHT not applicable
Would there be a CGT liability on the beneficiaries in this instance as I understand HMRC view such matters as substance over form. For all intents and purposes the property belonged to the grandmother just the title was changed in 1995. The trustees or beneficiaries have never benefited from legal ownership or possession/enjoyment of the property. I wonder if for tax purposes the trust may be disregarded and the property pass to the beneficiaries under the terms of the grandmothers will?
legal title of the property is still in trustees names (it was never transferred out after grandchildren reached 21)
Physical possession of property is now with trustees/beneficiaries as of 1st April 21
Any advice on this situation greatly recieved.