9:36 AM, 1st August 2018, About 5 years ago 6
By way of background, my wife and I are both 56 years old. In recent years, my wife has been caring for her elderly father and managing his property portfolio. I am a plumber, qualified to fit boilers and do gas safety checks. My taxable income is around £34,000 to £38,000. It varies from year to year but that’s what I have earned over the last three years. My wife has no other income.
We have two daughters who are currently at University.
The mortgage on our own home was paid off a couple of years ago.
My wife’s father passed away a few months ago and left the property portfolio to her, she is an only child and her mother passed away several years ago.
The property portfolio consists of 9 rental properties, which we think are worth around £2 million in total and produce around £80,000 a year of gross rent. Net of expenses, but excluding finance costs because all mortgages will be repaid, the business should make profits of around £52,000. We have assumed the expenses mentioned above will continue to be around 35% of gross rental income.
Her father had life insurance written into trust, which we believe will be sufficient to pay the IHT due on his estate and to repay the mortgages. The policy has paid out already. The money is in our bank account and no IHT is due on this because the policies were written into trust. We are still dealing with probate.
It was always my father-in -laws intention to leave the property rental business to my wife and our family as his legacy. We want to honour this by continuing to build the portfolio and to provide for our girls in the same way he has done for us.
My question is:-
What is the best ownership structure for us to consider moving forwards?
I trust you will understand my reasons for wishing to remain anonymous, but please feel free to call me Steve.
Thanks in advance for your suggestions.
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