Change of house deeds...

gilbert2505

I'm sorry if this is in the wrong section but I'm struggling to think where it should go...

It is a sensitive issue and I am just looking for a bit of advice. My mother is 75 years old and as a family (with her consent) we have agreed that we need to start swapping utility bills etc over in to my name (her son and the person that is due to inherit her house).

The house is roughly valued at £100,000 so as I understand it there should not be any inheritance tax issues but my main concern is how we go about changing the deeds into my name?

Can anyone give me a little advice on what to do and what to look out for, I may be way off the mark but I seem to remember someone saying that the person releasing the house has to be alive for seven years after the deeds are changed? I can't imagine that's true and can't remember the details.

Like I say, it is a sensitive issue as I do not want my mom to go anywhere and I do not like reinforcing her mortality whilst she is still of perfectly sound mind, but I guess this is just being prepared.

Anyway, thank you in advance for any advice

G_M

I don't understand. Your mum is still alive yes? And living in the house? It's her house - leave it alone!

Make sure she's written a will (I assume she is still legally 'competant'?

Once she passes on the Executers of the Will should arrange Probate and then transfer the ownership, and utilities, to whoever inherits (apparantly you).

Of if a sale is necessary, then the Executers will sell and distribute the proceeds.

If you are worried about helping her 'manage' at home, arrange Power of Attorney so that you can pay HER bills (they are not your bills just as the house is not yours) yet.

Re Inheritance Tax. You mention 'family' so I assume you have brothers/sisters? Do they not inherit anything? Does your mum have other assets? If the house is indeed the only asset, and is worth £100K, then you are right, there will be no IT to pay, but that will be decided at Probate AFTER which the Deeds/utilities get transferred.

timmyt

G_M wrote: »

I don't understand. Your mum is still alive yes? And living in the house? It's her house - leave it alone!

Make sure she's written a will (I assume she is still legally 'competant'?

Once she passes on the Executers of the Will should arrange Probate and then transfer the ownership, and utilities, to whoever inherits (apparantly you).

Of if a sale is necessary, then the Executers will sell and distribute the proceeds.

If you are worried about helping her 'manage' at home, arrange Power of Attorney so that you can pay HER bills (they are not your bills just as the house is not yours) yet.

Re Inheritance Tax. You mention 'family' so I assume you have brothers/sisters? Do they not inherit anything? Does your mum have other assets? If the house is indeed the only asset, and is worth £100K, then you are right, there will be no IT to pay, but that will be decided at Probate AFTER which the Deeds/utilities get transferred.

Here here, agreed 100%

hcb42

if its under the IT threshold, why change it now. she can write a will leaving it to you, or she can die intestate and it will become yours (and any siblings, assuming there is no spouse..) so no need to go through all this trauma now discussing her mortality as it were.

kingstreet

I also agree with G_M.

However, I'd also like to introduce the issue of future care-fee funding. If the property is left in the Mother's ownership it will continue to be an asset and vulnerable to future care-fee funding costs, should these become an issue.

Transferring the property out of her ownership now, while there's no question of an imminent need for care, should rebutt any suggestion of deprivation of assets later.

I feel she should take independent legal advice to ensure her wellbeing and security is at the forefront of any action taken.

G_M

kingstreet wrote: »

I also agree with G_M.

Transferring the property out of her ownership now, while there's no question of an imminent need for care, should rebutt any suggestion of deprivation of assets later.

I feel she should take independent legal advice to ensure her wellbeing and security is at the forefront of any action taken.

This is unlikely if she continues to live there after transferring ownership. An obvious tactic to avoid care fees which councils are unlikely to accept. This IS likely to be viewed as 'deprivation of assets' (google it).

But the independant legal advice is sensible.

I seem to remember someone saying that the person releasing the house has to be alive for seven years after the deeds are changed?

the 7 years you mention relates to Inheritance Tax liability. Since it appears IT is not an issue, the 7 years is irrelevant.

hcb42

maybe


My dad died at 70 in the last few years - and my mum at 66 - 1 yr earlier

To have transferred the house to me to avoid some potential liabilility of care homes or indeed tax - to me that is a conversation I would never have wanted with either parent.

I dont know how (not saying the OP here as his post no way suggests that he is thinking that way) people can be that concerned over the financial matters - i.e. the reduction in inheritance. there cannot be anything worse for a parent in their dying days/months.

timmyt

kingstreet wrote: »

I also agree with G_M.

However, I'd also like to introduce the issue of future care-fee funding. If the property is left in the Mother's ownership it will continue to be an asset and vulnerable to future care-fee funding costs, should these become an issue.

Transferring the property out of her ownership now, while there's no question of an imminent need for care, should rebutt any suggestion of deprivation of assets later.

I feel she should take independent legal advice to ensure her wellbeing and security is at the forefront of any action taken.

You have kind of fallen on your own sword.

Aside from the facts that OP wasn't coming from the care home angle, that such low numbers of people actually go into care, and some Councils have no time limit to when they can look back, unless you want to specify more detail OP, OP you have nil reason for a transfer and so doing it may well be seen as trying to put the asset/house beyond the reach of the LA.

Indeed, whilst mum could take legal advice....the suggestion is to do it to avoid care fees - oops. But worth speaking to a solicitor in that area, as some people would argue, why not give a Transfer of the Property a shot....though if it goes pair shaped, mum is deemed as still owing the house for means testing and yet has no ability to sell it as you own it.

Lots of angles.

gilbert2505

Firstly, can I thank you all for your response, they are all useful and much appreciated.

However, I am sure that all of the advice is well meant but sometimes it is difficult to tell the intonation of some peoples response. I really thought that this may be a logical step to take on my mothers behalf and believe me, it is not a subject that I am finding easy to discuss as I do not want to be 'planning for the worst' so to speak.

The advice that I have received is great and as a will was drawn up sometime ago I am pleased to hear that the best plan is effectively to 'do nothing'. I am pleased that this is not a subject that I would have to raise with her as she is still living in the property and capable of looking after her own affairs, it was just an attempt to do what we thought would be best but once again, this advice is invaluable, thanks.

G_M

One final point. To return to the question of Power of Attorney.

Just as writing a will is sensible, it is sensible to consider drawing up a POA. This is much easier to do when the elderly person is fully competant, like your mother. Having drawn it up, it does not have to be used. Like the will, it can be put in a drawer until it is needed.

If, in several (hopefully many) years time, your mother becomes confused/unable to cope with bills etc or gets dementia, the POA can be 'Registered' and you and/or whoever your mother has chosen can then act to help with her banking and other decisions.

Trying to set up POA AFTER she has become mentally incapable is much more difficult, as by definition she is legally unable to grant POA - you need to get doctors/lawyers and the Office of Public Guardian involved.

Although difficult to discuss with your mother, stress it will not be used till needed so is like a will - preparing ahead.