Transfer property before or after sale?

[Cartimandua]

Hi everyone, long time lurker here. I have a question and I'd be grateful for any advice. The scenario is: two sisters, Sally and Jane (not their real names and their words are spoken by an actor). They have inherited a property, and own it as Tenants in Common, with Sally owning the greater share. Sally has offered to buy Jane's share and Jane is fine with that - all good so far. However, Jane wants to, kindly, give (not sell - give) her share to a half-sister, Mary, (who was not a beneficiary of the Will) as Jane already has a home of her own and Mary has not.

Would it be better for Jane to transfer her share of the property to Mary before Sally buys it (and then for Sally to buy it from Mary) or for the sale to go through, and for Jane to then give Mary the money. We are wondering if there are any tax implications, or anything else we may not have thought of. Any advice or experience much appreciated.

[Cartimandua]

Anyone?

[Ganymede]

Hi everyone, long time lurker here. I have a question and I'd be grateful for any advice. The scenario is: two sisters, Sally and Jane (not their real names and their words are spoken by an actor). They have inherited a property, and own it as Tenants in Common, with Sally owning the greater share. Sally has offered to buy Jane's share and Jane is fine with that - all good so far. However, Jane wants to, kindly, give (not sell - give) her share to a half-sister, Mary, (who was not a beneficiary of the Will) as Jane already has a home of her own and Mary has not.

Would it be better for Jane to transfer her share of the property to Mary before Sally buys it (and then for Sally to buy it from Mary) or for the sale to go through, and for Jane to then give Mary the money. We are wondering if there are any tax implications, or anything else we may not have thought of. Any advice or experience much appreciated.

 

 

It depends on a number of things, the first being is there currently a mortgage and will Sally be taking one out to fund the purchase?

 

Can Jane be trusted to follow through with her end of the deal and give the money to Mary? That would seem like the easier and cheaper option as less legal fees.

 

One potential problem is IHT if Jane dies within 7(?) years of gifting Mary the money.

 

Any concerns then it is best to see an independent financial advisor.