Gifting a Propertry

MrEnigma

My mother wants to gift me her property, it is worth £275k, so no IHT, or CGT.

Originally the property was being left to me in her will, however after some recent events in which she was taken into hospital, another family saw the will, and told me they would contest it. So she is now transferring the deeds.

Once the deeds have been transferred, can anybody still contest this?

She is of sound mind, and has doctors reports to confirm.

She is also making me Power Of Attorney.

Thanks

TonyMMM

Will she still be living in the property ?
Will she be paying you rent ?
Does she (and you) understand the implications regarding "deprivation of assets" ?

Mojisola

Does the relative have any good reason for thinking they are entitled to an inheritance from your mother?

Take legal advice but it might be better for you to become 'joint tenants' - when one of you dies, the other automatically owns the house and it doesn't become part of the estate.

That way, if your mother needed care, the house could be sold to fund a residential home - at least to half the value. Get in writing that the transfer has been done because of the relative threatening to challenge the will.

Get any transfer done before you become your mother's attorney. Once that happens, you can only act in her best interests and your motives could be challenged if you take over ownership of her home.

You also need to think about the knock-on effects on you of owning a property that isn't your home.

MrEnigma

TonyMMM wrote: »

Will she still be living in the property ?
Will she be paying you rent ?
Does she (and you) understand the implications regarding "deprivation of assets" ?

She will still be living in the property
We are considering whether she will pay rent @ market rate
We know about deprivation of assets, and she refuses to go into care.

Mojisola

MrEnigma wrote: »

She will still be living in the property
We are considering whether she will pay rent @ market rate
We know about deprivation of assets, and she refuses to go into care.

If she's able to stay at home, that's fine but who knows what her health will be like in the future? She may have no choice.

G_M

MrEnigma wrote: »

My mother wants to gift me her property, it is worth £275k, so no IHT, or CGT.

1) it is the value of her entire estate, not the property, that determines if IHT is due. 7 year rule will apply (though see 2 below)
2) If she continues to live there it will be a 'gift with reservation' so will still be included in the Estate for IHT purposes
3)unless you make the property your primary residence ie you live there, CGT will ba payable by you

Originally the property was being left to me in her will, however after some recent events in which she was taken into hospital, another family saw the will, and told me they would contest it. So she is now transferring the deeds.

If the will is unclear, why not get it re-written properly so there will be nopossibility of a contest succeeding? This is a much better way to deal with the problem.

Once the deeds have been transferred, can anybody still contest this?
No.

She is of sound mind, and has doctors reports to confirm.good

She is also making me Power Of Attorney.
good
Thanks

If she continues to live there you'll be a landlord and must comply with many regulations. And pay income tax on any rent. And insure as a landlord..... etc

Is there a mortgage on the property?

See also
* New landlords: advice, information & links

MrEnigma

No Mortgage on the property.

I think I will live there as well. Good point to consider

MrEnigma

Once the deeds have been transferred, can anybody still contest this?
No.

We will get the will changed once we have transferred the deeds

Dan-Dan

You both need separate legal advice

Moving in , will only give fuel to the relatives fire further down the line if things are not watertight

davidmcn

MrEnigma wrote: »

Once the deeds have been transferred, can anybody still contest this?

G_M wrote: »

No

Or not quite on the same basis as contesting a Will, but someone even of sound mind may have undue influence put on them to do things, which may then be overturned by a court.

Making sure she has independent legal advice (which she ought to anyway) will be persuasive that the OP wasn't "helping" her to sign any deeds.

Browntoa

take it as far as both using separate solicitors for clarity , you use 1 , she the other , sort of belt and braces