Transfer of ownership - Help!

tqob

I am in the process of transferring the deeds of my daughters flat into my name as she is struggling to survive on her own. She will be moving in with a friend in a different town but does not want to sell her property until she is settled.
I will not be getting any income from the property and there is no mortgage to pay off but my concern is that this will now be my 'second' property.
How would that effect me if I wanted to sell at a later date or if I died? I know there are some restrictions and extra taxes. The property is valued at £150k, my current home is valued at £450k. Can anyone offer some basic advice?

Thanks

getmore4less

Why bother with the transfer?

Just pay the bills if she cannot pay them.

tqob

She is suffering from depression and wants me to deal with everything for her at the moment and does not want the stress of owning the property. I know it's sounds complicated but it's the best thing for her, you do anything for your kids!

Colincbayley

tqob wrote: »

She is suffering from depression and wants me to deal with everything for her at the moment and does not want the stress of owning the property. I know it's sounds complicated but it's the best thing for her, you do anything for your kids!

The quickest,cheapest and easiest way would be to pop down and see your solictior and obtain a power of attorney over her property affairs.

dopester

Colincbayley wrote: »

The quickest,cheapest and easiest way would be to pop down and see your solictior and obtain a power of attorney over her property affairs.

Not as simple or as cheap as it used to be, but probably cheaper and avoids possible complex future tax issues and obligations than full transfer of a 2nd property back to parent.

Imagine if the OP and their married partner were to die (sorry, but just example here). Their estate would be hit hard by Inheritance Tax (assuming they own their own house outright). As the daughter's property is owned by her outright, if it were transferred back to the parent, there would be a 40% hit payable to the IHT tax-office on the value of the house she wants to acquire back from her daughter.

The OP might want to think about that carefully, as it would hurt what their daughter/other children might receive back from any Will / Intestacy rights. Unless they don't want to maximise monies/assets to pass to support their loved ones?

Paul_the_Painter

Creating a Trust for her benefit may be an option.

Trust is created, you are the Trustee, daughter signs her house over to the Trust - carry on.

If you die before her, a different Trustee can be appointed, or if/when she is better the trust can pass the house back to her.

I'd spend a bit and consult a solicitor, it is generally a bad idea to do things involving property on an informal basis. Imagine the situation if you had another daughter and the 2 hated each other, and the only asset in your estate was "her" house, it could get very ugly!