Time to move your house into trust territory - Mary Holm

Monday 23 February 2004

Q. If a house is left in a will to two children and they sell the house and divide the proceeds, can a proviso be included in the will to say that they must use the money in a particular way?

By The Landlord

A. In most cases, "if a proviso is professionally and specifically drafted to cover the wishes of the deceased, then the answer is yes," says Kevin Peacock, Public Trust's general manager, estate and financial planning. In other words, see a lawyer or the Public Trust.

It's possible, though, that the courts could overturn the proviso after you die, he adds. You could give yourself more control by setting up a family trust.

If you want your house to be protected by the trust, you lend the trust the money to buy the house at market value. You can then forgive the debt at the rate of $27,000 a year - or $54,000 for a couple - without paying gift duty.

Read More - Opens in a new window
Commenting is closed

Property News

Key reform will only protect bad tenants

Getting rid of “no cause” termination notices only serves to protect bad tenants and will have a negative impact on the broader community, not just landlords, according to landlord advocates.

House Prices

No stopping Capital price rises

There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.

Commercial

Demand challenges for commercial sector

Vacancy rates in the commercial property sector are set to increase as changing economic conditions dampen demand.

Mortgages

LVR loosening likely - ANZ

LVR restrictions were never meant to be a permanent feature of New Zealand’s housing market and ANZ economists argue that some further relaxing of them could soon be on the cards.

Site by PHP Developer