New home in daughters name?

MobileSaver

poledancer49 wrote: »

I have never claimed a penny from the state all my life and I have paid for every penny for the house I own. I don't plan to get ill but lets just give the money to the state now and save all the hassle.

So you have never ever used the NHS, gone to school, used the services of the police, driven on a road or caught a train? What do you think taxes are used for?

You didn't answer the question though, why should my hard-earned taxes pay for your care so that your daughter can get rich?

poledancer49

Of course I have used the above......and I pay my NI, council tax and TAXES!!! I have worked since I was 18.

In answer to your question MobileSaver, I feel if I have paid into the system all my working life I don't feel YOU will be paying for my possible care. Wish you well for your future and hope it is a happy one.

duchy

If your daughter is single -with no prospects of ever getting married -it might work but if she is married or gets married and subsequently got divorced -as the house was in her name it would be considered a marital asset so 50% could go to her husband.

If she already owns her house then a second home would also attract CGT I suspect.

What would happen if she didn't out-live you ? Again this depends if she has a husband or children (or later aquires them)

What would happen if one of you died and the other remarried ? Suppose your daughter disapproved of the new partner? As the owner she could evict you. What would happen if she had a new partner who wanted you out..... or if she got ill and a partner was granted power of attorney over her affairs.

What would happen if as you get older the house is no longer suitable for you - and you need a new home ?

All these scenarios may seem unlikely but they do happen .

The system is set up to prevent ideas like yours -for the reasons some poster have listed above. Whether you agree with them or not morally is another matter entirely so I've simply listed some of the pitfalls.

InMyDreams

There was an interesting article on the BBC once (I've been trying to find it and can't) which showed how much the average person/family (?) pays into the state and how much they take out, based on their income. I was very surprised to see that my family, based on our income, has received far more than we've paid in, despite having above average income. It was quite sobering to see that even we have cost the state money, despite feeling that we've paid more than our 'fair share'. You have to be earning mega-bucks before you even break even. I wish I could find that article...

susannicola

friends of mine did this 20 years ago and no problems at all, they still live in house that is in sons name, we thought they were silly at the time but dont think so now.

sirmosh

poledancer49 wrote: »

Of course I have used the above......and I pay my NI, council tax and TAXES!!! I have worked since I was 18.

In answer to your question MobileSaver, I feel if I have paid into the system all my working life I don't feel YOU will be paying for my possible care. Wish you well for your future and hope it is a happy one.

In the nicest possible way, if you do ever need care then it's likely to cost a hell of a lot more than you've paid into the system unless you've earned bucket loads, in which case you probably wouldn't be too worried about the state needing to pay for your care.

It's understandable that you want to give an inheritance to your children but with people living for so long these days we need to work to pay for our own retirement more than giving anything to our kids who will need to do the same thing.

mjdh1957

Also, having assets gives you choices. Not having assets means less choice.

I'd rather spend my money on a nice comfortable care home (should I need one) than fall back on the ones that are available to those who can't pay.

And these boards have some threads from people who have done similar things and then fall out with their offspring (money does strange things to some families). You could find yourself homeless if your daughter throws you out after a major row. Owning the house yourself safeguards you in many ways.

xylophone

http://www.hmrc.gov.uk/inheritancetax/pass-money-property/pass-home-to-children.htm
http://www.ageuk.org.uk/home-and-care/care-homes/deprivation-of-assets-in-the-means-test-for-care-home-provision/

The above might be worth a browse - also, lots of "what if questions" - if your daughter were married and then divorced, if your daughter needed means tested benefits, if your daughter pre deceased you etc etc...

Upsidedown_Bear

InMyDreams wrote: »

There was an interesting article on the BBC once (I've been trying to find it and can't) which showed how much the average person/family (?) pays into the state and how much they take out, based on their income. I was very surprised to see that my family, based on our income, has received far more than we've paid in, despite having above average income. It was quite sobering to see that even we have cost the state money, despite feeling that we've paid more than our 'fair share'. You have to be earning mega-bucks before you even break even. I wish I could find that article...

I found this, don't know if it's the one you mean

http://www.bbc.co.uk/news/uk-politics-13633966

martinsurrey

alun4 wrote: »

You can give her the proceeds of your sale and then live for 7 years.

Even living for 7 years will not let it escape inheritance tax

check out the rules on gifts with reservation of benefit.

http://www.hmrc.gov.uk/manuals/ihtmanual/ihtm04071.htm