Grand father buying property for Grandchild to live in. ( Trust)

grandfather buying property for grand child

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Hello

A grandfather wants to buy a property for his grandchild 13 year old who lives in rented property with his father so they both can move in.

I beleive a bare trust will do the trick and I told him to see a financial adviser however anyone have any experience so I can brief him thourgh the process and if there any other ways approach this. 

Thanks

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By Manchester_man
17th Sep 2016 19:26

I would see a solicitor without doubt.

They may suggest a discretionary trust vehicle to hold the property on the minor's behalf until he is 18 / 21, with yourself as a trustee.

Legal advice needed I'm afraid.

Best of wishes

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Worm
By TheLambtonWorm
19th Sep 2016 09:08

Yes, definitely not the job of a standard financial adviser.

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By michaelblake
19th Sep 2016 13:08

The title to the property could be put in father's name with a deed noting that he holds it as nominee for the child who is a minor. This would be a bare trust with no IHT, CGT or income tax consequences for the father. The property is treated as the child's for the purposes of those taxes. Under these arrangements the property would however become that of the child to do whatever he liked with at age 18. It is questionable whether it is advisable to give a child access to the capital value of the property at such an early age. The alternative, of restricting the child's right of access to the capital until he reaches a later age, will require the creation of a settlement (trust). Any settlement created for that purpose will fall within the relevant property regime for IHT purposes.

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