Buying a house but putting deeds in children name

virgoqueen

Newbie here sorry if something similar has been posted before.

I'm looking into purchasing my parents home, but I would like to put it in my children name (3 in total) in trust till I pass away.

There are a few reasons for this:-

I cannot this moment in time work full time 2 of my children have disabilities so I am there carer and only able to work part time. So what I do earn would get me a small mortgage IF I'm lucky.

My parents have offered to sell me there house minus what my share of the inheritance will be plus a little extra off as they will be coming to live with me couple months a year but it will be my house they are going to live in there holiday home most of the year.

Because I cannot get a mortgage we have figured between us that I can pay my parents a figure each month till the asking price is paid in full plus giving them my savings as a deposit.

Now as far as families go you know what it's like it can get messy, as my parents house is not technically being purchased right out I don't want the deeds in my name till it's paid in full and I'm sure they feel the same that's there asset if they were to sign over the house they have zero asset.

So this is the reason I would like to put the house jointly in my children name the youngest is a baby and eldest is 15 so my feeling is that if the house is owned jointly the house cannot be sold until the youngest is 18 by this time the house will have been paid off in full to my parents.

my questions are
1) Would the eldest when turning 18 would she be able to raise any debt against the house? (or any of them for that matter when they turn to adult)
2) Is there a way I can prevent the house from ever being sold jointly by the 3 of them before I pass away? or decide to move out if that happens before leaving them to do as they please with there inheritance (this is how I will technically view the house as being there future money pot)
3) will they have to pay inheritance tax when I pass? (I'm not planning on dying any time soon I'm 33 so should hopefully have a long time to go yet)
4) is there anything else you can think of that suggest this is a bad idea all around?

Thanking you in advance.

carefullycautious

Children under 18 cannot be on the deeds. Your parents need to be very careful about deprivation of assetts

Guest101

Genuinely this sounds like a bad idea. Why not just save up the money your going to pay them?

Arrangements like this can go wrong so quickly. Parents change their mind, or u do, or they feel the price has increased so u shld pay more etc.

And no there's not a lot u can do if your kids own the house and want to sell of release equity. Far simpler to have in your name. Your 33, so 48 at worst before one if your kids could in theory but it, inheritance tax isn't likely to come into it before then

getmore4less

Very messy, IHT probably not an issue unless there are significant assets over £325k, but a CGT mess.

Depending on the disabilities there might be some things that can be done but that would need specialist advice.

Minors can't hold property, the trustees would be the legal owners and have to abide by the terms of the trust so they would have control over the house.

Having a property in trust that cannot be sold is likely to be a VERY BAD idea.

silvercar

Don't do this.

There is a thread running on here where a parents house was put in child's name and everything went wrong when someone hit hard times.

I don't know the extent of your children's disabilities, but if they are likely to need means tested benefits at any time, you don't want them to be in a situation where owning a property in name puts them in a situation where they can't access the help they need.

tBagpuss_2

What would you be hoping to achieve by having the property in your children's names? In most circumstances, it would be far better for it to be in our name, and for you to then make a will. In your will you could make provision for the children to be able to remain in the house (depending on what the arrangements for their care would be, in those circumstances )

It's good that you are thinking about your children's future but to be honest, you are probably better focusing on your own future at present.

If your parents transferred the house to you, it would be possible for them to have a mortgage over it (in effect, you would have a mortgage where your parents, rather than a bank, are the lender) That would give them security as they could force a sale if you stopped paying them. You would however almost certainly not be entitled to any kind of housing benefit or mortgage interest benefit to cover the costs.

It would be possible for your parents to set up a trust with you and the children as beneficiaries and with you having a life interest in the house, there are advantages and disadvantages to this and they would need to get specialist advice. They could do this now, or in their wills so that it would take effect only when they die.

It might be possible for you and your parents to own the house jointly (i.e. you buy a share of the property) Again, you would all need to get proper advice on this as they would need to be on the mortgage, so you would probably need a joint mortgage with them, plus a separate, legal agreement with them that you would pay the mortgage payments.