changing deeds

susieanne

my parents paid off there morgage many years ago , they are thinking about putting mine & my sisters names on the deeds now , my parents would still live in the house just sign it over to us . Does this cost money to do this ? and how much ?

tanith

There are lots of implications to trying to do something like this.. not least of which is if either of your parents ever needed to go into care.. someone will be along to tell you them in more detail I'm sure

TonyMMM

What are they hoping to achieve by doing this ...?

Could cause you and them problems in the future if not thought through properly. ....they need to take proper advice.

McKneff

You cant just sign a house over.
They need to get some professional advice.

CLAPTON

why????


their estate will still be liable to IHT on their death as the gift is one with reservation (i.e. they live there still)

AND when you come to sell you will ALSO be liable to capital gains tax

a double whammy

beecher2

https://forums.moneysavingexpert.com/discussion/3133668

This thread explains the thinking behind it

Yorkie1

CLAPTON wrote: »

why????


their estate will still be liable to IHT on their death as the gift is one with reservation (i.e. they live there still)

AND when you come to sell you will ALSO be liable to capital gains tax

a double whammy

This thread explains some of the principles referred to by Clapton in a bit more detail
https://forums.moneysavingexpert.com/discussion/3133836

susieanne

Thanks for the links i have been having a read , i also googled capital gains tax and i understood it to say you dont have to pay capital gains tax if the whole of the estate is worth less than i think it said £325,000 , my parents home is worth about £110,000 max so i am thinking capital gains tax woundnt apply .

CLAPTON

susieanne wrote: »

Thanks for the links i have been having a read , i also googled capital gains tax and i understood it to say you dont have to pay capital gains tax if the whole of the estate is worth less than i think it said £325,000 , my parents home is worth about £110,000 max so i am thinking capital gains tax woundnt apply .

cgt has absolutely nothing to do with any 325,000 limit
you are mistaking IHT and CGT

paddedjohn

for a property valued at £110.000 you would be liabe for CGT of around £18,000 after your individual allowance has been deducted unless you are a higher rate tax payer where this rises to £28,000

getmore4less

paddedjohn wrote: »

for a property valued at £110.000 you would be liabe for CGT of around £18,000 after your individual allowance has been deducted unless you are a higher rate tax payer where this rises to £28,000

How do you get that?

My understanfings the transfer is CGT free(PRR) and starting value for the new non resident owners.