LawAnswers.com.au - Australia's #1 Legal Community

LawAnswers.com.au is a community of 10,000+ Australians, just like you, helping each other.
Ask a question, respond to a question and better understand the law today!
Join us, it only takes a minute:

NSW Am I Able to Buy Out Uncle's Share of Inheritance?

Discussion in 'Wills and Estate Planning Law Forum' started by JeffB, 9 November 2015.

  1. JeffB

    JeffB Member

    Joined:
    9 November 2015
    Messages:
    3
    Likes Received:
    0
    My grandfather recently died. In his will, his house was left to my father and uncle 50/50 as an inheritance. Am I able to buy out my uncle's 50% share of the house at market value if he is agreeable? This would avoid the house having to be sold to disperse his estate and I could then live in the property.
     
  2. James D. Ford - Solicitor

    James D. Ford - Solicitor Well-Known Member

    Joined:
    19 June 2014
    Messages:
    204
    Likes Received:
    44
    Hi Jeff

    Yes, what you are proposing is possible. Though other alternatives are open for you to consider.

    Do you know whether you are eligible for a First Home - New Home Grant?

    First Home - New Home scheme | Office of State Revenue

    If you went ahead with your proposed purchase of this existing house, you would loose your entitlement to the First Home - New Home Grant (if you are eligible)...

    If your father will own half of this property debt free, and is willing to provide a guarantee, and security to a bank to support your purchase of a Property... you might be able to purchase any new (and take advantage of the First Home - New Home Grant) or existing property 100% in your name, with this support (if it is required, and you could not obtain a loan without such support).

    As a twist you might be able to purchase 100% of this existing property, and pay out your Dad as well as your uncle.

    Who is the Executor nominated by the Will? Have you run your proposal by them?

    If you buy a property, and you have a co-owner, even if it is your Dad... I would recommend a co-ownership agreement which would set out how everything would work in advance, so the possibility of a dispute is reduced.

    I await your responses, kind regards, James
     
  3. JeffB

    JeffB Member

    Joined:
    9 November 2015
    Messages:
    3
    Likes Received:
    0
    Hi James,

    Thank you so much for your swift reply. You have been most helpful.

    My father is actually the executor of the will and he is agreeable to the proposal. What steps would I have to take to buy out my uncle's share of the property(should he agree)? My father may even gift me his half of the property so that I can own 100%. Is this possible also?

    I am not eligible for the FHOG as I currently own a place in country NSW.

    Thank you in advance
     
  4. James D. Ford - Solicitor

    James D. Ford - Solicitor Well-Known Member

    Joined:
    19 June 2014
    Messages:
    204
    Likes Received:
    44
    Hi Jeff

    You will need a valuation of the Property, by a licensed valuer.

    Perhaps start with a free valuation price range by a real estate agent... to commence the discussion with your uncle.. then if he is agreeable, engage the services of the licensed valuer to determine the sale price.

    Yes, your father can gift you his share of the Property.

    You need to be aware that whilst the distributions pursuant to the terms of the Will... will be exempt from taxes and stamp duties... your purchase/receipt of the gift will most likely not be...

    When was the Property originally purchased by your grandfather? was it purchased before CGT - Capital Gains Tax, ie., pre 1985?
    (specifically, pre 20 September 1985)?

    Which property will be your principal place of residence, your property in country NSW, or this one?

    Another consideration, is whether you want your father to hold the Property on Trust for you... we can go through the advantage and disadvantages of this...


    Kind regards
     
  5. JeffB

    JeffB Member

    Joined:
    9 November 2015
    Messages:
    3
    Likes Received:
    0
    Thanks James,

    The property was purchased in the 1960's I believe. What are the tax implications of this for me? Obviously I would have to pay stamp duty but what about CGT? I would move into this property and use my existing residence as an investment.


    Cheers
     

Share This Page

Loading...