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Executor transfer title to non-beneficiary?

Discussion in 'Estate Planning' started by manic, 16th Aug, 2013.

  1. manic

    manic Member

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    My grandmother recently passed away leaving her house to my father and aunty in equal shares. My father is the executor. I have agreed to buy the place off my father and aunty.

    We have obtained a grant of probate and would like to now transfer the estate. As the executor, can my father transfer it directly to myself and avoid stamp duty or does it have to go to in my dads name (without SD) and then I buy it off him and pay stamp duty?
     
  2. Terryw

    Terryw Well-Known Member

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    You should speak to a good lawyer. Stamp duty would normally apply, but there could be ways around this depending on the terms of the will etc.
     
  3. manic

    manic Member

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    Spoke to a property lawyer and the titles office. It's a no-go as I'm not a beneficiary in the will.

    The property goes to Dad as the executor and he then 'sells' it to me. Even if he 'gifts' it to me it needs a market valuation and then stamp duty must be paid.

    A bit of forward planning could have avoided the SD if I was the sole beneficiary in the will but that would have been a sensitive subject with my grandma.

    You win some, you lose some :(
     
  4. Terryw

    Terryw Well-Known Member

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    That is why it is good to have an optional testamentary discretionary trust incorporated in the will
     
  5. Oogue

    Oogue New Member

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    You must have great powers of persuasion! In your first post you were going to buy the property from dad and aunty, and now they're "selling" it or gifting it to you.

    Keep things in perspective: you are gaining a valuable property and losing less than 5% of the windfall in duties. You did right to respect you grandma's sensitivities.
     
  6. Terryw

    Terryw Well-Known Member

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    Make sure you know the tax consequences of you receiving the property as a gift.