Holiday cottage into trust

This is a question pertaining to my own circumstances

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I have 3 siblings. My parents have a holiday cottage, they wish to put this into trust for all of us. My father is seeing a solicitor tomorrow.

Personally, I see a whole load of hassle down the line. The alternative would be to gift the cottage to one of us now (and hope to live for seven years). There will be sufficient funds to enable us all to have equivalent money in due course.

Have I missed some massive benefit of trusts? To me, I am worried all siblings will end up arguing over the property - but, at the same time, it is a lovely building we would miss.

 

 

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By nick farrow
01st Apr 2020 11:26

there may be CGT on the gift into the trust for starters

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By Tax Dragon
01st Apr 2020 11:37

It's possibly not being done for tax reasons, but it clearly has tax consequences. It would be worth seeing a tax advisor as well as a solicitor, especially if "all of us" includes Ma and Da themselves.

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By Lawskills
06th Apr 2020 10:10

Outright gift - no CGT holdover; gift into trust - CGT holdover available. The use of a trust may be intended to ensure the property is not sold without the family's agreement and that the family have to work together to organise its use - for family holidays or letting.
Obviously, there are compliance and ongoing tax issues owning the property in a trust which may outweigh its initial attraction what about a family investment company instead if the idea is to keep the house in the family?

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