house purchase in daughter's name

sallysaver

We have bought a property for our daughter (her name on the deeds) which hopefully in years to come will prove a decent investment for her. Meanwhile, it has been agreed that we, her parents will reside there, until such times we no longer require the property (i.e. bungalow and/or nursing home). We need to protect our interest and it has been suggested that a letter needs to be drawn up which will cover us for all eventualities. It is highly unlikely that family circumstances would ever be anything other than amicable but we just need the re-assurance such a document would give and need some help with the correct terminology. Thank you - sallysaver

silvercar

I think you should see a solicitor - it could prove money well spent.

There is such a thing as "gift with reservation" or some similar term. What you've done is given a gift but are keeping the use of it. This could be seen as a deliberate act to avoid having to sell your home to pay nursing care costs.

For your own piece of mind I would say you should get professional advice.

real1314

seconded, the gift with reservation actually applies to taxation, specifically inheritance tax - the IR would probably see this as the occupier house.

As for nursing home fees, the relevant authorities may see this "purchase" as deliberate disposal of capital.

definitely worth spending some money on good advice - solicitor or accountant? or both?

Bossyboots

Agree with the above. This property will still be classed as your estate for inheritance tax and the local authority can ask a court to declare the property as yours if you require residential care in the future.

I think you are also being incredibly naive to think that things will always be amicable. You can never know what the future will bring and you simply cannot be sure that you and your daughter will never fall out. It only takes her meeting a chancer with an eye to free board and lodgings and you could run into trouble.

You definitely need to take proper legal advice on this matter and sooner rather than later. It would have been better to do this before buying the property so don't waste any time now.

never_enough

Agree with bossyboots. What if she were to marry & then divorce? Assets could/would be split & the home may have to be sold. See a solicitor who can advise the best way of sorting this out.

loulou41

never_enough wrote:

Agree with bossyboots. What if she were to marry & then divorce? Assets could/would be split & the home may have to be sold. See a solicitor who can advise the best way of sorting this out.

This is making me think, I am buying a house for daughter and son in joint names, it will be a gitft without reservation and daughter will be living there but son will have a room until he he finds a job in London. I am very concerned now, it's that possible if daughter gets married and divorced, her ex could force her to sell the house and ask for his share. Thanks

barnaby-bear

loulou41 wrote:

if daughter gets married and divorced, her ex could force her to sell the house and ask for his share. Thanks

Yes of course - that's what happens in divorces. Pre-nups aren't legally binding in this country contrary to popular belief. Even with a common-law partner worth making them sign a tenancy as there is increasingly the possibility that common-law partners will have increasing rights. If jointly owned ex counldn't claim son's share just half of daughter's share.

seven-day-weekend

never_enough wrote:

Agree with bossyboots. What if she were to marry & then divorce? Assets could/would be split & the home may have to be sold. See a solicitor who can advise the best way of sorting this out.

This is the main reason we do not have our son's name either solely or jointly on the deeds of the family home. Our solicitor advised against it.

loulou41

Is there any way to go about this? I would not like the house to be sold and the money split in three ways. It's money we have worked hard for. Hubby says, it's a risk we have to take. I do realise by wanting to help daughter and son on the property ladder, there will be problems when we are dead if one of them wants out. They are OK at the moment. Thanks.