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A property share was gifted, but should the previous owner have paid rent?
We have recently been appointed to act for an elderly (octogenarian) client who has considerable assets. We have now established that about ten years ago he disposed of three-quarters of his large and valuable holiday home to his wife son and daughter. They received a quarter share each. He retained the other quarter.
He has paid all the outgoings since and has occupied the property – together with his wife and sometimes with his children too – quite often; this includes for several weeks during the summer months. No rent has been paid by any of the owners to the others. It is not otherwise let being solely for the family’s use.
I might have answered my own question here. Should I quantify an arm’s length rent for the three-quarters given away and hope the outgoings will cover it?
That could possibly deal with the gift with reservation...
