selling my house to daughter

00ec25

tawse57 wrote: »

With regards to tax I thought, could be wrong, that you cannot gift any sum over 3 thousand without it being liable for tax? The tax in the first few years, I thought, was 40% and then diminishes to zero after 7 or 9 years. Not sure about this.

you are confused
the £3k amount relates to IHT - a person may gift up to £3k per year free of IHT, if they gift more than £3k and then die within 7 years of the gift, the value of the gift is included in the total value of their estate at date of death, when calculating if the total value of the estate is more than the IHT threshold and so IHT would be payable. You are correct that the value to be included in the estate reduces over the 7 year period and after 7 years is ignored. (9 years is incorrect)

tawse57 wrote: »

I believe you can have the house put into a Trust with yourself and your child as trustees sometimes with a third party such as a solicitor acting as a third trustee. The trust is then worded so that you get to stay in your house until the day you die at which point the house passes in full to your daughter in your will and, likewise, she gets to stay in the house and, equally as important, she leaves the house to you in her will.

setting up Trusts is more relevant to the situation where the estate will be liable to IHT, rather than the circumstances outlined in the OP

tawse57

00ec25 wrote: »

you are confused
the £3k amount relates to IHT - a person may gift up to £3k per year free of IHT, if they gift more than £3k and then die within 7 years of the gift, the value of the gift is included in the total value of their estate at date of death, when calculating if the total value of the estate is more than the IHT threshold and so IHT would be payable. You are correct that the value to be included in the estate reduces over the 7 year period and after 7 years is ignored. (9 years is incorrect)

Thanks - that is worth knowing.

poppysarah

So you're giving your other kids £10k each and you're giving her 70k?

m33r4

PasturesNew wrote: »

I'm not sure I'd want a parent randomly turning up and moving in with me for the rest of their life.

Seems a daft idea to me, to be honest....

Her daughter lives with her in her house?

crusty_toenail

barbs88 wrote: »

I own my house outright valued at approx £140,000 and would dearly love to retire. I am 64 years old and my daughter of 30 lives with me. I would be selling at well below market value i.e anything from £50,000 to £70,000 although she has a 3 year fixed rate mortgage offer of up to £88,000. I have 3 other children all with good jobs and their own homes and they are agreeable that she buy from me. I would like to leave them something when I die though and was thinking of at least £10,000 each. I don't think it would be a good idea for my daughter to have to sell the house to give them that money so would it be better for her to have a mortgage of £70,000 and for me to put aside £30,000 for them or for her to have a smaller one to enable her to save and to then be able to remortgage when I am gone. I claim my pension and have always just been that few pounds over being able to claim anything in benefits so have had to work hard all my life. I just want to help my daughter as she has been good to me. Any help most gratefully received as not sleeping thinking about this. We have an appointment with the building society next Tuesday to get the ball rolling. thanks in advance.

I would think long and hard regarding this plan of action. I think you might find that your other children will not be happy with this arrangement. Nobody knows what the future holds for your 4 children. It may be wiser to give all 4 all the same monies at the same time.

I know of similar situations were 1 child got more from the parents as they were not doing so financially well as the other children, then they went on to benefit financially in other ways and it caused a rift in the family.

zarazara

Couldnt you just sell her half the house? then make wills each leaving the other their half.

Bonny1

There may be trouble ahead...

Person_one

Can you release a little of the equity in the property to give your daughter a deposit for her own property rather than the whole of yours? I presume she works as she wouldn't be able to get a mortgage otherwise.

At 30, does she not want to strike out on her own a bit and have some independence? I love my mum but I wouldn't want to live with her forever, I want my own life! Does your daughter not expect or hope to meet a partner and maybe have a family of her own?

themull1

i'm a mam and i would want all my kids to have the same, not really fair giving her a cheap house just because she's last one there.!