Would it be best to have the house in my name?

Mrs_Bones

Hello, not been on this part of the board before but I have a house question and this seems the place to put it, if it isn't can someone please point me in the right direction, thanks.

I currently joint own a house with my dad but my dad keeps suggesting he puts the house completely in my name. Is this a good idea? It worries me and I think my dads being morbid, he keeps talking about dying but he's in good health.

kidmugsy

Mrs_Bones wrote: »

I currently joint own a house with my dad.

There are two ways of owning property together (in England & Wales). You can own jointly, or you can own as "tenants in common". The latter might be the better bet when a property is owned by father and daughter, in terms of inheritance, care costs etc. It might be a good idea to find out which arrangement you have. Then you could return here to ask more questions.

Mrs_Bones

Thank you Kidmugsy, it's currently a joint tenancy. When my mum died, my dad said as it was partly my money that paid for the house it was only fair I should have my mums share of it and put my name down on the deeds to own it jointly with him. I'm an only child so I know eventually I'll have the whole thing but I'd sooner not think about it until the time if you know what I mean, I don't know why he's worrying about it now.

G_M

Do you live with your dad? If not, and you come to sell the house, Calital Gains Tax may apply on your half ownership.

And if the house is put fully in your name, CGT would apply on the whole house.

Of course, if you plan to move in yourself, this will probobly not be relevant.

What is the (supposed) advantage of transferring ownership? What is the rationale?

Has your dad made a will? If so, I assume you are the sole Beneficiary?

Mrs_Bones

G_M wrote: »

Do you live with your dad? If not, and you come to sell the house, Calital Gains Tax may apply on your half ownership.

And if the house is put fully in your name, CGT would apply on the whole house.

Of course, if you plan to move in yourself, this will probobly not be relevant.

What is the (supposed) advantage of transferring ownership? What is the rationale?

Has your dad made a will? If so, I assume you are the sole Beneficiary?

Hi GM, I honestly don't know why he's going on about transfering ownership now, I think we are happy as we are but he seems to think it's a good idea. He's 76 and I think he's just thinking he's getting older and he wants to start sorting things out, yet health wise he actually seems in better health than me. I am the sole beneficiary on the will. Currently it's mainly only me that lives in the house, my dad has recently started stopping here a couple of nights a week but mostly he lives elsewhere.

G_M

Mrs_Bones wrote: »

Currently it's mainly only me that lives in the house, my dad has recently started stopping here a couple of nights a week but mostly he lives elsewhere.

OK if it your primary residence, then CGT will not apply to you whether you own half or the whole lot.

If he lives elsewhere but just visits you, then perhaps his primary residence is elsewhere? Of course, CGT will not apply to him unless he sells before death. On death, Inheritance Tax may apply but not CGT.

But what if he needs the money tied up in the property to pay for a Care Home? Or to live off?

You need to consider this also in terms of his overall financial position, and possible future needs.
* Sounds like he has a home elsewhere.....
* might he need the cash tied up in the property for future Care Home costs?
* if he gives it away, the local authority might consider it 'deprivation of assets' and still include it in his assets when considering eligibility for CH costs from the LA
* Does he have other savings? Investments? Property? Etc

Thi is a complex area with many considerations, and some superficial advice from an internet forum to 'do this' or 'don't do that' can do no more than start you thinking.

Mrs_Bones

G_M wrote: »

OK if it your primary residence, then CGT will not apply to you whether you own half or the whole lot.

If he lives elsewhere but just visits you, then perhaps his primary residence is elsewhere? Of course, CGT will not apply to him unless he sells before death. On death, Inheritance Tax may apply but not CGT.

But what if he needs the money tied up in the property to pay for a Care Home? Or to live off?

You need to consider this also in terms of his overall financial position, and possible future needs.
* Sounds like he has a home elsewhere.....
* might he need the cash tied up in the property for future Care Home costs?
* if he gives it away, the local authority might consider it 'deprivation of assets' and still include it in his assets when considering eligibility for CH costs from the LA
* Does he have other savings? Investments? Property? Etc

Thi is a complex area with many considerations, and some superficial advice from an internet forum to 'do this' or 'don't do that' can do no more than start you thinking.

Thanks GM, it all sounds very complicated, if he keeps going on about it I think we'd be best getting proper advice from somewhere before we make any decisions. I'll leave it for now.

booksurr

Mrs_Bones wrote: »

Thanks GM, it all sounds very complicated, if he keeps going on about it I think we'd be best getting proper advice from somewhere before we make any decisions. I'll leave it for now.

just in case you come back you need to be sure where father's primary residence is NOW because if he does indeed transfer the other half to you then GM is incorrect in saying CGT will only apply if he sells, it will also apply if he transfers it

given there is at least a question mark as to whether it remains father's main residence then a transfer before death invites exposure for him to CGT which will be irrelevant if he leaves things alone and you simply inherit it later as there is no CGT on death

if he is however concerned about losing his share of the house if he goes into a care home then the question mark applies even more so, since if it is not his main home anyway, even if he gives it to you it would count as part of his capital when assessing how much he has to pay for his care because he has given away property that was not his home

xylophone

Has your dad made a will? If so, I assume you are the sole Beneficiary?

If the house is owned as a joint tenancy, then it cannot be "willed" by either party to the other -ownership will pass by survivorship.

http://www.landregistry.gov.uk/public/guides/public-guide-18

Mrs_Bones

booksurr wrote: »

just in case you come back you need to be sure where father's primary residence is NOW because if he does indeed transfer the other half to you then GM is incorrect in saying CGT will only apply if he sells, it will also apply if he transfers it

given there is at least a question mark as to whether it remains father's main residence then a transfer before death invites exposure for him to CGT which will be irrelevant if he leaves things alone and you simply inherit it later as there is no CGT on death

if he is however concerned about losing his share of the house if he goes into a care home then the question mark applies even more so, since if it is not his main home anyway, even if he gives it to you it would count as part of his capital when assessing how much he has to pay for his care because he has given away property that was not his home

This house is still my dads only property and his main residence in terms of post etc. in the same way it is mine.

Bluebonnie

Is Dad still getting the Council Tax demands? and the utility bills?

Is he still on the Electoral Register?

That helps to establish that it is (or may be) his principal private residence.