PROPERTY LAW

LIFETIME GIFTS

I want to give some valuable personal items to my two sons so they don’t have to pay inheritance tax on them. However I don’t really want the boys to have the items before I die, so is it possible to give them away and then ‘borrow’ them back? You can’t give your property away and continue to use it from an inheritance tax point of view: the taxman would regard it as ‘a gift with a reservation of benefit’ and would add the value of the items to your estate for inheritance tax purposes (which could result in double taxation if it has increased in value). One way round this would be for you to pay a full market rent for the use of the items. In addition to small gifts not exceeding £250 per person, gifts out of excess income and certain gifts on marriage, you can give away £3,000 in cash or property tax each year (£6,000 if you haven’t used the previous year’s allowance) which will escape inheritance tax. Otherwise the gifts have to be made seven years before you die to avoid inheritance tax altogether.

FLAT SPIN

The lease on my flat has some 69 years of a 99-year lease to run. Since I am 72 the length of the lease doesn’t concern me unduly, but I have left the property to my daughter and wonder whether she will be able to extend the lease or buy the freehold. If you are a ‘qualifying tenant’ – your lease was originally for more than 21 years and you have been the registered owner for more than two years – your daughter will have the right to extend the lease within two years of the grant of probate or letters of administration following your death. It may be possible to extend the lease through informal negotiation with the landlord. But it can be a difficult process and you or she should get professional help from a solicitor or surveyor with experience in this area.

FIXING A HOLE

I had a conservatory built last year but the roof has always leaked. Although the builder has been back a couple of times he hasn’t been able to fix it. He’s now avoiding me. If you think the leak can be fixed quite simply and cheaply you will probably be better off getting in someone who knows what they’re doing to make the repair and forget the builder. If the problem is more serious – a design fault perhaps or faulty materials – you may have to have a report prepared by a surveyor and threaten to sue the builder unless he puts things right. If he fails to respond within a given time, say 14 days, you can ask another firm to repair the conservatory and attempt to recover the cost from the builder. This may be easier said than done.

FOR HIS EYES ONLY

My parents have both died within the past 12 months and I have discovered that they made a will leaving everything to my brother, whom I haven’t spoken to for five years. He won’t let me see the will, and says he has no intention of obtaining probate since the amount involved is only small. Have I a right to see the will, and how do I go about getting a copy? You have no right to see the will I’m afraid. A will only becomes a document of public record (i.e. anyone can see it) if it goes to probate. Probate is only required where larger sums, usually above £5,000 are involved, since smaller amounts in institutions such as building societies and the national savings bank can be paid out without production of a grant.

»»Call SAS Daniels LLP Solicitors on 0161 475 7676 or 01625 442 100. Visit www.sasdaniels.co.uk If you have any legal questions, write to Weekly Law and You, MEN Media, Mitchell Henry House, Hollinwood Avenue, Chadderton OL9 8EF or email mail@lawQs.co.uk