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How do you o pass on your house to your children
adept
Posts: 16 Forumite
Has anyone got any advice on how to pass on your house without the state grabbing great lumps of the value.
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Comments
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How old are you?
How old are they?
How much is the house worth?..0 -
Don't forget there is also the issue of assets being sold to pay for long term care.0
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Hey there - I was having a convo about this with a friend of mine who knew quite a bit about this area. First thing was first - he advised that a married couple with kids should first split the house in their repsective names. Thereby should any one member dies, the value of their individual ownership may fall below the threshold for the higher percentage bracket for inheritance tax.
It's also worth dividing the share of the property to your kids now while you are alive so that the kids don't get hit the full lump of tax when you die. You should note that this strategy will only work after 7 YEARS have passed from the time you make the transfer of ownership of parts of your assets to your children (mr brown is clever isn't he). So the earlier you can plan for these kinds of things the better!
Generally you will find by dividing your wealth between you and you wife (no inheritance tax is applicable between spouses) and your children as soon as can be done; you will fare much better off when it comes to the tax man digging his claws into the families pockets.
It's really great to see you're thinking about implementing such strategies right now - forward planning at its best!0 -
There is one big (to me anyway) problem with passing the house to the children which my lawyer pointed out to me - if they get married and then divorced, then their ex-spouse is entitled to half and they the house may have to be sold to give it to them.(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0
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