Appreciate If forum members could assist me regarding below issue.
A widow (M) in her mid-60’s transferred her main residence (current MV £500K) to only daughter six years back and currently live in the same property. Since then, value has increased by £250K. M own two more BTL properties valued at £ 700K. Daughter(D) is married and lives separately.
To my understanding, the property will come under GROB rule. Now the daughter is considering transferring the property to a DT and allow mother to occupy the property rent free during mother’s lifetime. The beneficiaries of DT will be mother (prime beneficiary) and her minor children. D and her husband are considering to be trustees in the DT.
Will this be feasible as the property is already under GROB? Also, will there be any legal/tax issues that will arise due to this transfer other than usual taxes relevant to DT?
Are there any other suggestion including trust structures that are suitable, where daughter do not want to hold legal or beneficial ownership of the property and allow mother to live rent free?
Apex Estate Planners Ltd