Gifting expenses?
Question from Adi updated on 1st July 2015:
I was just wondering what sort of property expenses you need to state when gifting as these will increase the amount to forgive.
Our expert Mark Withers responded:
The issue is not expense specific. Any funds lent to a trust or repaid by a trust will impact the debt the trust owes the settlor/trustee. This should be accurately tracked and accounted for in the trust accounts. Our own policy is to record further advances separately from formal deeds of acknowledgement of debt to ensure reconciliation with formal deeds and periodically update the trusts lawyers so that repayments or advances can be formally recognised and deeds completed accordingly. This then also facilitates additional advances being gifted should that be the wish of the lender.
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.
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