machiavelli
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Graham,
I have specific knowledge of a parent/child situation.The pair approached a specialist Solicitor and the parent was advised to draw up papers gifting HALF the house to the child. A clause was also drawn up giving the child Power of Attourney Individually and Severally with another relative.(in your case you could , perhaps,pick a close friend). This clause means that any decision made about what happens to the house, should the parent become mentally incapacitated or unable to decide for themselves, is made by the child and the other person who must be in agreement for the action to be taken.
Previous answers about Death, Debt or Divorce affecting the situation are true.
I am told that it is difficult for a creditor to get hold of your house if another person is still living in it and that British law in relation to healthcare provision has changed for the better anyway.
This is an important step Graham and you should get proper legal advice from a paid Solicitor who can answer all the specific questions about your personal situation. |
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Alice b
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my grandmother did this-big mistake as 2 of her charming 'kids' want her out (old peoples home). keep it to yourself , you're not dead yet! |
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.
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Be carefull even if you trust your kids not to do anything foolish.
Sell it to them now for a nominal fee with a clause that you are free to live there until your death and that it must not be resold in any other event without your permission. |
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Hibee
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Gifts with reservation (GWR)
An asset that a person has given away may still be treated as forming part of the donor's estate on death if he or she has retained a benefit in the asset. An example is where a donor makes a gift of property but then continues to live in it rent-free. |
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victorious
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I have been told that you should not transfer your house to your child (especially if married) because that child could become divorced and the partner file for half of the house thereby forcing the sale and making you homeless in the proceed.
It used to be the rule that if you transfer your house before entering a residential home or the like, the caring association could call on the new owner to meet the fees in retrospect unless the new owner actually lives there. Another job for Citizens Advice Bureau though to make sure of recent legislation. |
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ms sensible
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from what I've heard the property would have to be in the child's name for at least 7yrs before the time the parent would be needing any full time care. otherwise the government can still ask for a contribution towards the care and can insist on the sale of the property. so the earlier the better id say. my advice would be to go see a solicitor. you ll defiantly be needing a good one if you do intend to transfer ownership. |
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Kiki
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I'm not sure if it is the same in the UK (I'm in the US), but there is a danger if the child ever gets sued...the parents could end up losing their house. |
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pittsburgh_steelers_go
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Here are a few cons to consider if you transfer ownership of your house to a child:
If the child is married or gets married and divorces; half of the child's ownership now belongs to the spouse.
If the child is in an auto accident and gets sued, your house can be taken away.
If the child gets into financial debt, your house can be taken away from you. |
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SunnyDays
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I would have thought the inheritance tax issue was something to seriously consider as a positive for this action.... |
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Bob the Boat
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Graham,
I am not a "financial advisor"
But after the death of my Father, my Mother transferred the family home to my sister & myself which seemingly needs to be done and in place for seven years, to avoid inheretance taxation, capital gains, and all the rest of it.
This I am told is a wise move.
You could always go back and live with your offspring, I guess.
Not much of a help, but it seems OK for us.
Bob |
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Holly F
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Seriously if you REALLY trust your kids or kid...that is an excellent idea...it is always better to give it all away to avoid taxes or avoid the government pulling it from you for medical reasons...but then you would have nothing to say about it ....if you kids go nuts and act irresponsibly...you would pay dearly |
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Franco
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It is good for elderly care and other state benefits, provided you do it over 7 years earlier. It is useless for inheritance tax, as the IR has now closed that loop hole, even for the rich who use trusts. - What is the world coming to!
The disadvantage is that your credit worthiness will be reduced and the children can kick you out when they grow up, if they wish. It may seem incredible now, but it happens more often than you may think. Personally, I would not risk it. |
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mini the prophet of fubar
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depends on your children ive heard horror stories of parents doing this and the kids then selling the house from under them and making them homeless |
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timmy
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i attended a retirment seminar lately one of the subjects was the transfer of property they advised against it because there had been so many horror stories reguarding siblings wanting to chuck parents out after the sign over! |
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Kerrie-anne
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I think its a great idea!
not only do they get one of the best gifts you could ever give to them, but it stops the government grabbing every penny they can
Like the swindlers they are
after all, you have already paid your taxes, then they want more!
Take into consideration the new thing they want to impose though, if a house is left empty for more than six months, they want to be able to take it away and use it as funding or housing for people who in need. Make sure it never, never is left unused!
Soooo wrong its absurd! |
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bizzybee
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Hi There
My parents transferred their house into my name, and it was in my name for a good 10 years before, it was sold. I obviously then gave the proceeds of the house back to my parents. I don't think their is a penalty to be paid, because what warrants a penalty in this situation, (check if the ruling of you living for 7 years applies). I paid the mortgage from my bank account, although my parents did actually pay it.
Just make sure your children are trustworthy before signing such an asset over to them. No offence meant.
All the best. |
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Peacelilly
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A friend's mother was forced to sale her house to fund her residential home care. Her daughter did not get a penny! Had they know this would happen they would have transfer ownership to avoid this. |
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