Rental income

I agree. It would be pointless going to see any advisor with a simple complaint as expressed here about not receiving the income. It is essential to know how these assets are held, whether trusts are involved and what kind.

It sounds like the parents are still alive.

HMRC assesses Gifts with Reservation Of Benefit based on their market value at the time of the donor's death. If the donor continues to benefit from the gifted property until their death, the property will be included in their estate for inheritance tax purposes, and its market value will be subject to taxation.

These are know as the GROB rules:

Whilst gifting property may sound like an obvious solution to reducing an estate’s value for IHT, where a donor continues to derive any benefit from the gifted property, their estate is not reduced.

Instead, the gift is said to be one with reservation of benefit and the ‘GROB’ rules work to treat the gift as never made for IHT purposes.

When do the GROB rules apply?

The GROB rules are triggered when someone gifts property and one of the following applies:

• The recipient did not take possession of the property and enjoy use of it for a period of either seven years immediately before the death of the donor or the date of the gift; or

• The recipient did not enjoy use of the property to the entire exclusion, or virtually the entire exclusion, of the donor during either the seven years immediately before death or since the date of the gift.

These are rental properties so no possession has been taken or use enjoyed.

Thank you for all your replies.
My father died back in 2013 and my Mother is almost 86. I know she pays the taxes correctly.
The bank accounts which the rental is paid into she and my brother have access to.
We have a family accountant and solicitor who I will contact but just wanted to get some advice here first.
My siblings do not receive any income either.
The basic question is ‘ if you own a rental property, even if it is a quarter should you be receiving an income’ ?
Years ago we just let this continue as earning good money myself but now I am 62 I am looking forward to retirement and this money would obviously be very useful.

It doesn’t cause a “Family Feud” to ask what is happening with this arrangement I’m sure it’s all legal and above board but it is going to be fairly complex.
Find out who the trusetees are and just ask

You do not appear to be listening to what is being said. Is depends on how the assets are held.

If you are saying that you and your siblings own the assets outright, that they are not held in any kind of trust, who is managing and controlling the money from the rents?

Who is saying you cannot draw on the income? Who has being paying the tax on the rents from the ten properties for all thse years? Do you understand what I am saying about GROB?

David49

It doesn’t cause a “Family Feud” to ask what is happening with this arrangement I’m sure it’s all legal and above board but it is going to be fairly complex.
Find out who the trusetees are and just ask

That rather depends on the family.

It certainly does depend on the family and this is a delicate topic of conversation.
My Mum and my unmarried younger brother have control whereas my sister and my brother do not live there.
The family dynamics aren’t that good and my Mum and brother not overly open in discussing with the 3 of us.

Yes I do understand that these properties are not in any trust for the 4 siblings .
Tax has been paid from the relevant accounts.
No one has said that we can’t draw an income but it has never been discussed and not needed until now.
My younger brother lives with my Mum and is quite bitter about the 3 of us having a life basically.
Unfortunately he has terminal cancer too so these quarter shares are just a nightmare for our accountant.
He has been urging things to be tidied up for years but my Mum and my brother seem to almost resent the 3 of us and do not want us to use the money to travel etc.
It’s such a complex situation and I do thank you for your patience.

If the arrangement - whatever it is, is tied to your mothers will whoever is administering it is not going to disclose what is happening. In that case your mother is the only person that can explain, if she is willing to do that.

Otherwise you have to wait until she dies and the will is revealed.

Readandcook

Yes I do understand that these properties are not in any trust for the 4 siblings .
Tax has been paid from the relevant accounts.
No one has said that we can’t draw an income but it has never been discussed and not needed until now.
My younger brother lives with my Mum and is quite bitter about the 3 of us having a life basically.
Unfortunately he has terminal cancer too so these quarter shares are just a nightmare for our accountant.
He has been urging things to be tidied up for years but my Mum and my brother seem to almost resent the 3 of us and do not want us to use the money to travel etc.
It’s such a complex situation and I do thank you for your patience.

The accountant seems key, can they recommend some kind of resolution, what do they think 'tidied up' would involve? It may be easier than it's not in a trust (Silverbrook may have advice), l was involved in a family trust administered through a bank, it was a nightmare getting rid of the bank. At least the accountant sounds helpful.