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Background

‘Mrs Towers’ is a widow and lives in a large Victorian house in a desirable part of Edinburgh. After all her normal Inheritance Tax (IHT reliefs), her house remained exposed to Inheritance Tax.

Mrs Towers would like to pass ownership of the house to her children but also wishes to continue the enjoyment of living in it. She benefits from a generous widow’s pension and also has a rental property that she has owned for many years, generating income she now does not require.

How GWA helped

GWA advised on how to transfer the ownership of her house and set up a market value rent arrangement with her children to ensure the house remained out of her estate for IHT purposes.

We also proposed a Trust arrangement to hold the rental property, which would allow her to pass ownership down to the next generation and avoid an immediate charge to Capital Gains Tax. We worked with her lawyer to ensure the legal documentation was put in place and assisted with a review of her Will.

We respect the privacy of everyone who comes to GWA for advice. So while this case study is true, we have changed client names to maintain business and financial confidentiality.
This information should be taken as general guidance only. Before making any decision or taking any action, you should seek professional advice.

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