Gifting a property not reversible
A recent case demonstrates that if you want to pass on assets but want to retain control, you need to do it by way of a trust, but there may be tax consequences of this.
The case in question has been in the headlines as much because of the class issues and the fcat it involved a dispute between mother and daughter. The mother sought to reclaim a £million house due to her daughter hooking up with man she considered unsuitable, for some frankly ridiculous reasons (such as his choice of food in a restaurant !)
Some years before the daughter got together with her now husband, the mother distributed the majority of the family’s wealth when her husband died, including a house in Chelsea worth some £3 million now.
When it became clear the relationship was serious the mother tried to insist that her daughter and partner entered into a prenuptial agreement, but they refused. The mother started court proceedings based on arguing that she had provided the capital for the property in Chelsea, therefore it remained hers. However, the Judge disagreed.
