Being gifted a property?

[Sheraton80]

Hi,

Long story short, but my grandparents passed away last year, and my dad has decided to gift their property to me and my sister.

I’m not really sure how gifting works when it comes to properties (I assume the deeds simply get transferred by a solicitor?), but since I already own a property, and we would plan on simply selling it - would I/we end up paying a large sum of tax, etc, on sale?

Would it therefore be better for my dad to sell it, then simply gift us the cash from the sale instead?

Obviously, we’ll be seeking financial advice on this, but thought I’d ask to see if anyone had any experience or advice to share.

Any feedback much appreciated.

Thanks!

[leaseholder64]

Assuming that your parents inherited the property, and didn't live in it, you should look into their creating a deed of variation on the will. That will make it as though the property went direct to you. That may or may not be to your advantage. Doing so will avoid a potentially exempt transfer for your parents, although, if they are in good health and not accident prone, that might not be an issue. It would also avoid a second valuation.

Not doing so may be simpler, and may save you capital gains tax in the future, as the acquisition cost will be the value at the time of the gift, not at the time of the death. However, there is a possibility that your parents may have to pay CGT on the difference between probate and gift valuations.