changing names on deeds

julieanne13

hi :-) we have bought our home but want to transfer the deeds to our sons dose any one know how we do this? thanks julie

Cannon_Fodder

Is there a mortgage?

julieanne13

no we havent

happybroker

you will be gifting them the property I guess, you need to speak to a good solicitor who will be able to take care of this and also advise you on the implications of doing what you are doing.

personally I would use a "proper" solicitor rather than one off the internet, may be a little more expensive but at least you will have some one real to speak to. Ask around friends and family for a recommendation.

julieanne13

sounds like it might cost thousands? and will the boys have to pay?

Cannon_Fodder

Shame, it would have been an easy "the Lender will need to approve, credit check them for income etc".

A bit messier, now.

I understand the process is pretty straightforward paperwork, in itself.

The complications arise along the lines of;

- the size of your estate and potential IHT 'avoidance' issues.
- your right to reside needs addressing.
- the potential for the council to view the transfer as "deprivation of assets" also exists.
- do, or will, the sons have their own properties? There will be tax implications for what will appear to be their 'second' home etc.

A mix of financial adviser/accountant/solicitor issues. Discuss with one you trust most and see where it leads.

eta; crossed post.

Maybe go back to why you want to do it. Leaving it to them in your will might be simpler.

happybroker

julieanne13 wrote: »

sounds like it might cost thousands? and will the boys have to pay?

Not necesarily no. It's a pretty complicated area is all as per CannonFodders post and what the implications are really depend on what your moties for doing this are.

Honestly, there is some rare old nonsense posted on here about precisely what you're proposing (that's my Status Quo link for today!) and the best thing to do would be see a solicitor who will give you the advice you need.

Admittedly this may cost a couple of quid but "a stitch in time" and all that.....

julieanne13

that all i want to do - a stich in time :-) living here is not a problem till we die but i just want the boys to have it now and hopefully save a wee bit in tax - however as the house is only 150k i dont see why the government need to know?

Cannon_Fodder

What if you sign it over to them, then have a major falling out and they sell it? You would be homeless. Plenty of mothers have said, "my boy wouldn't do that", right before he did.

Money (assets) and families don't mix, I have found.

What difference does them having it now make, do you feel ? As long as you need to live in it, they can't do much with it, they will have trouble re-mortgaging it if you are noted as a 'permanent fixture'. (Phrase escapes me, coz its Friday..!)

£150k won't attract IHT, but I'm not so sure about CGT if you gift it now and then die within 7 years - needs expert advice. It will still attract the council's beady eyes if you need to go into a care home soon.

Seek professional advice.

Annisele

julieanne13 wrote: »

that all i want to do - a stich in time :-) living here is not a problem till we die but i just want the boys to have it now and hopefully save a wee bit in tax - however as the house is only 150k i dont see why the government need to know?

Ah. That's the sort of thing that can cause huge problems, so it really is worth seeing a solicitor to get it done properly (although they might advise you not to do it at all).

When you say you want to save a bit in tax - are you talking about inheritance tax? Depending on your total assets (and those of your spouse if you're married) there might not even be any inheritance tax to pay on your death.

An off the top of my head list of problems that might occur with a plan like yours:

• Your sons might argue with you and force you to leave what is now *their* home
• Your sons might die before you, leaving the property to a wife/children/some random charity
• Your sons might be declared bankrupt, and the property would have to be sold to pay their debts
• Your sons might get divorced, and your property sold to pay off an ex-spouse
• If you need care and/or benefits, you might be considered to have deliberately deprived yourself of capital

That's not an exhaustive list of pitfalls, and they probably won't all apply to you, but I hope it persuades you to take professional advice before you do anything.

Edit: CannonFodder types faster than I do!

getmore4less

julieanne13 wrote: »

that all i want to do - a stich in time :-) living here is not a problem till we die but i just want the boys to have it now and hopefully save a wee bit in tax - however as the house is only 150k i dont see why the government need to know?

What tax do you think you will be saving?