Advice please - adding a person to prperty title deeds

solentsusie

Hi All


Trying to be succinct here.


My mother owns her home outright, it has been in the family for a few generations. We recently found that my uncle who was also part owner of the property (and who died 21 years ago!) had not been removed from the title deeds, even though we have written indication from the solicitors dealing his estate at the time that this was being arranged - my mother keeps everything!! That he was still registered on the deeds was only found out as the council did a search to see who owned the property as my mother was entitled to help towards installing a wet room due to her illnesses.


I looked into this and got his name removed from the deeds which was quite a simple process.


Anyway, my mother now wants me to be added to the property title as well as herself. I no longer live at the family home, I rent a property near by. I am the sole beneficiary of her estate and she has a will written.


My mother unfortunately has, what will turn into in due course, terminal cancer. Over the past 9 years she has had two large operations for cancer and it has now spread into the bottom of her lungs and upper abdomen, albeit in the early stages, for which she is receiving treatment and she could continue on for some time - I hope!


She has requested that I look into what needs to be done to add me to the property title, as she is adamant she wants me added, and for her peace of mind I have looked into this. It seems quite a simple process if you do not have a mortgage etc.


I doubt very much that my mother will go into residential care. In fact if she does need care further down the line I will have no hesitation in moving back into the family home to help care for her. The fact is that she is currently still very independent and doesn't need me there and obviously we both want to keep it that way for as long as possible. The value of the property and her estate is under the inheritance tax threshold.


My mother doesn't receive any state benefits other than her pension and attendance allowance. She also receives a private pension from my late father's employees which brings her over any entitlement for any other benefits.


What I want to ask is, is there any problem with adding me to the title deeds that I may be missing?


Thank you.

wwl

What is the point of doing this?
If below IHT threshold, and you are sole beneficiary there may not be any benefit in doing it.

solentsusie

wwl wrote: »

What is the point of doing this?
If below IHT threshold, and you are sole beneficiary there may not be any benefit in doing it.

It is not about whether there is a 'benefit' as such. My mother wants this as twice there have been problems with the house deeds after the death of a relative and it is for her peace of mind while she is still here, knowing that she has things how she wants them.


I just want to ensure by doing this she will not be disadvantaged in any way, or that there are any other consequences that I haven't anticipated. It is not about financial gain.

Keep_pedalling

I also can't see the point of doing this, and it may be detrimental to you when you eventually do inherit the property in the form of capital gains tax.

There should be no problems with the house deeds if she has now cleared up historical issue of the uncle.

If she wants to make things easier for you when the enevitable happens, far better to concentrate on making sure her will is up to date, providing a record of all her assets (bank & savings account, insurance policies etc) and funeral instructions.

wwl

Keep_pedalling wrote: »

If she wants to make things easier for you when the enevitable happens, far better to concentrate on making sure her will is up to date, providing a record of all her assets (bank & savings account, insurance policies etc) and funeral instructions.

Also selling any minor investments, shares etc. now that aren't likely to increase in value will reduce paperwork later.

And make sure you, not a solicitor or bank, is executor.

It would also be very useful to make her bank account joint in both your names, so utilities & other direct debits etc. will just carry on getting paid.

If you have checked that hers is the only name registered at the Land Registry and there aren't any complications there, then you will inherit, and can either sell or register in your sole name once you get Grant of Probate.
If anything, due to possible CGT liability it's probably best not to register in joint names, as the IHT-free threshold will cover any gain in value from now until she passes away.

SeniorSam

Very sensible, as it simplifies matters to do with the property when she dies. Any solicitor should help, but6 you can DIY if you choose to do so. You seem quite competent.

Sam

cte1111

SeniorSam wrote: »

Very sensible, as it simplifies matters to do with the property when she dies. Any solicitor should help, but6 you can DIY if you choose to do so. You seem quite competent.

Sam

I find it difficult to believe this advice comes from an IFA. I can't see any financial benefit from this plan but various risks, mainly:
Exposure to capital gains tax on any gain between the date of transfer and the date of death

If the OP goes bankrupt / gets divorced / dies and has a nearer relative, the Mother risks losing her house

It will count as an asset, should the OP need to claim any means tested benefits.

The house will remain within the mother's estate anyhow, unless the mother pays full market rent on the half owned by the OP.

As the transfer is being done when the owner is gravely ill, it is likely to fall under deprivation of assets, so would be counted as if the mother still owned the whole property, in any financial assessment for benefits or help with care costs.

If the Mother meets a new partner and wants to sell / move in with them, the child could prevent this or take their 'share' of the proceeds

Yorkshireman99

solentsusie wrote: »

Hi All


Trying to be succinct here.


My mother owns her home outright, it has been in the family for a few generations. We recently found that my uncle who was also part owner of the property (and who died 21 years ago!) had not been removed from the title deeds, even though we have written indication from the solicitors dealing his estate at the time that this was being arranged - my mother keeps everything!! That he was still registered on the deeds was only found out as the council did a search to see who owned the property as my mother was entitled to help towards installing a wet room due to her illnesses.


I looked into this and got his name removed from the deeds which was quite a simple process.


Anyway, my mother now wants me to be added to the property title as well as herself. I no longer live at the family home, I rent a property near by. I am the sole beneficiary of her estate and she has a will written.


My mother unfortunately has, what will turn into in due course, terminal cancer. Over the past 9 years she has had two large operations for cancer and it has now spread into the bottom of her lungs and upper abdomen, albeit in the early stages, for which she is receiving treatment and she could continue on for some time - I hope!


She has requested that I look into what needs to be done to add me to the property title, as she is adamant she wants me added, and for her peace of mind I have looked into this. It seems quite a simple process if you do not have a mortgage etc.


I doubt very much that my mother will go into residential care. In fact if she does need care further down the line I will have no hesitation in moving back into the family home to help care for her. The fact is that she is currently still very independent and doesn't need me there and obviously we both want to keep it that way for as long as possible. The value of the property and her estate is under the inheritance tax threshold.


My mother doesn't receive any state benefits other than her pension and attendance allowance. She also receives a private pension from my late father's employees which brings her over any entitlement for any other benefits.


What I want to ask is, is there any problem with adding me to the title deeds that I may be missing?


Thank you.

Exactly what was your uncle's interest in the property before he died? Are you absolutely sure nobody else inherited his interest?

SeniorSam

Cte111
I also find it difficult to see that you understand the position in this case. These circumstances would be perfectly acceptable in view of mothers situation. On her death the daughter has the property in her name and saves costs that a solicitor would love to enjoy. Advice in this forum does seem to lean towards ensuring that solicitors get plenty of business, when the client can be saved the costs. My few words are intended to be helpful and are not advice.

The Daughter is the sole beneficiary in the Will.

The Mother is terminally ill.

The Daughter is aware of financial position of both and aware of risks if any.

Capital Gains would be very small, but would doubt if any at all above CGT allowance the daughter would have.

There is no intention of avoiding the value of the home in mothers estate, or in claiming benefits from the State.

How is mother to meet a new partner and marry in her state?.

Cte111, not everything is in black and white. Sometimes circumstances will alter a situation and any guidance should take account of that.

'It is for the Mother's peace of mind while she is still here, knowing that she has things how she wants them'.


Sam

Mojisola

SeniorSam wrote: »

These circumstances would be perfectly acceptable in view of mothers situation. On her death the daughter has the property in her name and saves costs that a solicitor would love to enjoy.

I think it would be sensible to change ownership now to joint tenants but I'm not sure it would save money. There will be a payment now for the change to two names and another payment afterwards to remove the mother's name.

If the rest of the estate will be small, changing the house ownership now could mean that the estate doesn't need to go to probate which would make life easier.

FreeBear

Mojisola wrote: »

I think it would be sensible to change ownership now to joint tenants but I'm not sure it would save money.

If the property is currently unregistered with the Land Registry, doing the paperwork now will certainly save time and money at a later date.