House to kids - Can you help?

PhilCCFC

I wonder whether you could help?

My Dad owns his house outright and he is thinking of letting my Brother and his family move in to it whilst my Brother is going to rent his own house out and fund a smaller one level place for my Dad. The other 2 siblings (me and my Sister) are ok with this providing everything is written up properly to protect everyone in the future should there be a falling out and to cover off what will happen once we have to divide the estate up but we haven't really got a clue where to start with this one...

The house is not a mansion and is probably worth just under £200K so I don't think we are due to pay any sort of inheritance duty.

Are there any good advice websites which can guide us or are we better off going to the CAB or a solicitor straight off?

Seemore_2

Although I'm not an expert, I think its possibly a question of whether your fathers house, if registered, will remain in his name or whether there will be an actual change of ownership to your brother, and a consideration involved.

Alernatively try googling "gifting property". This brings up several websites which offer advice in this area.

PhilCCFC

Thanks for the advice, it would be a change of ownership to my brother.

samroo

do you really mean that your dad is giving his house to your brother in return for your brother buying a bungalow which will be registered in your dads name. or is your dad merely allowing your brother to live in his house

CLAPTON

what is the intention upon your father's death... equal shares for each of the three offspring or what?

how will the bungalow be paid for
who will actually own it

who will own your father's current house?

ognum

This is fraught with problems but one answer may be for your father to transfer the house to your brother but then will the house he buys to you and your sibling.
Your father needs to live for 7 years (which of course I hope he does) in order for there to be no tax payable on the gift to your brother.
If your father requires care in the future his home may need to be sold to pay for care, this could mean you inherit nothing!
Could be best for the house your Dad lives in to be in you and your sisters names. Gosh this is very complicated you need legal advice on this dont just let it happen without some.

PhilCCFC

Right here we go! First of all thanks for the responses.

It's very early days in all of this but we did suggest that my Brother is gifted the house with the intention of the estate being split 3 ways when the need arises. To make things more interesting my Brother currently has a house which he is looking to rent out in order to have a means to fund the 3 way split...eventually.

We haven't discussed much more than this yet aside from plenty of ideas. We did think about putting my Dad's house in all 3 names to avoid complications later on. And all 3 of us funding my Dad's new place.

I appreciate I am sounding pretty vague on the detail but that is the nature of my post really to see if anyone on here has been in this situation and what issues or challenges they came up with.

We will definitely get legal advice but we want to get a clearer picture in our minds before doing so.