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Could a daughter receive a small property share but receive a larger share of income?
Over recent months our practice has had various questions on the subject of jointly-owned properties and the allocation of income from them. I would appreciate readers’ thoughts on the following scenario.
A client owns a property jointly with his wife and for many years they have returned the monthly income of £1 000 in equal shares. However from that income they have paid £400 a month to their daughter who has a long-term debilitating illness that has prevented her from working.
The daughter’s husband died last year so now the parents would like to give her £800 a month. They prefer not to transfer the property to the daughter because this would result in a substantial capital gain. The daughter will inherit the house when the parents die.
The property is worth about £200 000 and cost them about £50 000 many years ago. It occurs to us...
