Most efficient way of trans parents house into my name?

JOM01

Tixy wrote: »

Have a read of the link in LazyDaisy's post.

Also given your thread on the other section of the forum - I would be wary about any potential impact transfering your parent's property in to your name could have on that issue. If you owned 2 properties in your name then that could make it more likely that a judge would allow a forced sale of your existing property to repay the charging order.

^^^ I hadn't considered that side of things but yes, seems like if my ex-business debt were going to be look at again they would consider another property as "spare" and as you say more likely force me to sell my house and clear the debt.

JOM01

holly hobby -
thanks and yes thats helps.
Is it an IFA who would be best advising as to how to organise everything?
If so... is there anywhere, where you will find a good/reputable one - rather than just picking one at random to conatact?

I'm in the Manchester area if anyone has any recommendations.

getmore4less

I don't think anyone answered the question

Can anyone advise on what the most efficient way is of transfering my parents house

Simple forms at the land registry.

AS has been said ask them why they think this is a good idea.

There are very few circumstances it will be a good idea so unless they have found one of those just forget it and make sure they have a will or you are the only child.


If there financial affaires are in order administration of the estate and transfer should be staight forward.

zzzLazyDaisy

getmore4less wrote: »

If there financial affaires are in order administration of the estate and transfer should be staight forward.

I agree. The simplest way is to make sure your father leaves a will, so you know what his wishes are. If your mother left everything to him when she dies, he will also inherit her nil rate band. Once he has gone, only anything above the joint nil rate band will be subject to tax. If there is a will, the probate and transfer of the property is easy to do, it is just paperwork, and in many ways a lot less complicated than transferring the property in his lifetime.

Re time limits - for deprivation of assets, there are no time limits - the LA can go back as far as is necessary. What matters is the PURPOSE of the transfer. If the LA are satisfied that the main purpose is to avoid care home fees, then if he needs to go into a home, your father will be treated as if he still owns the house, for means testing purposes. Some issues that will be taken into account are his age and health at the time of the transfer, and your own circumstances. For example if you already have a home of your own and he is continuing to live in his own house, this points very clearly to deprivation of assets for means tested benefits.

Also, once the house is in your name, it is legally your asset. So if you have debts, or you later divorce or go bankrupt, the house will be counted as your asset and you could be forced to sell it to satisfy your debts or satisfy the divorce settlement. Your father would then be homeless.

paddedjohn

Can anyone advise on what the most efficient way is of transfering my parents house


Buy the house at the full market value.

kingstreet

If you want to plan against future care fees and protect against creditor depradation, you should look at a Family Estate Plan. It will also protect against widow(er) remarriage issues and children losing their inheritance to a former partner.

I introduce to a firm which charges £1,500 for a FEP, which is a combination of wills and trusts, together with a change to Tenants In Common as far as the property ownership is concerned.

JOM01

paddedjohn wrote: »

Can anyone advise on what the most efficient way is of transfering my parents house


Buy the house at the full market value.

Interesting - why?

paddedjohn

JOM01 wrote: »

Interesting - why?

Because then your parents can't be accused of depriving themselves of assets to get around paying nursing home fees, they will be able to pay their own way.

zzzLazyDaisy

Because there s then no deprivation of capital - you get the property, your father gets the full market value - so his capital remains the same - he has just swapped bricks and mortar for cash.

It still leaves you with a mortgage to pay, tax to pay on rent, full landlord responsibilities, potential CGT when you sell and all the other potential downsides of divorce, debt and bankruptcy. Also you need to make a will in case you predecease him. However, if the arrangement is that he has the right to remain in the house until he dies, it is still not an unencumbered sale, so he still retains a beneficial interest, so the house would still fall to be accounted for in the estate on his death.

holly_hobby

There will also be issues from the lenders side of things, regarding the Vendor selling yet remaining resident, even if rent is paid - as this has possessionary issues for the lender, and from their point of view sits in the realms of distressed sale/sale rent back arrangement, further to which they will request that the solicitor confirms vacant possession on completion, which of course wouldn't be the case.

Any experienced IFA should be relatively ok in advising on estate planning such as the use of term assurance, GIV pols, trusts, and long term care provision (subject to suitable quals of course).

Your Solicitor will assist with the will, and how to manage the estate to minimise IHT exposure where possible i.e looking at exercising annual IHT exempt gifts (3k per tax yr, for which 1 unused yr may be carried forward), and other ways of constructing the estate and will.

Finding a decent IFA, word of mouth, receommendation from your solicitor (they usually have a referral to a few local brokers), or good old yellow pages !

Any advice given you can come back and sound out for a 2nd opinion with the financial advisers here on the board.

Don't forget IHT is only due if the NET (of ALL liabilities) value of the estate exceeds the nil rate thresholds highlighted - if it will definately be below the noted ceiling, then the estate doesn't really have any concerns or requirement for making provision or exhausting annual gifts etc.

The issues re deprevation of assets, is largely relevant if your Dad/his reps seek future state assisted long term care provison. IN respect of means tested benefits the value of the individuals primary residence is excluded from any evaluation process, there may be an issue however if he sought social housing or HB, as he has intentially deprived himself of his residence - but if he is to remain living there that won't be an issue.

Now you have the bones, and whilst a forum is great for a sounding board, no advice given here (esp re the circs being discussed) should be blindly relied upon, and you must sit down on a individual basis with a IFA and Solicitor who will walk you through much of which has been discussed here and more.

Hope this helps

Holly