Giving our house to our son.

Well_excuse_me.

Can we do it ?

We own our house and want to buy another house for ourselves to live in (for cash) while leaving our son in our current place.
There is no IHT problem, so can we just give it to him?

HappyMJ

Well_excuse_me. wrote: »

Can we do it ?

We own our house and want to buy another house for ourselves to live in (for cash) while leaving our son in our current place.
There is no IHT problem, so can we just give it to him?

Yes.....as long as there is no mortgage on it you can give it away.

Well_excuse_me.

HappyMJ wrote: »

Yes.....as long as there is no mortgage on it you can give it away.

Thanks.
So do we need a solicitor, or is there a cheap way ?

HappyMJ

Well_excuse_me. wrote: »

Thanks.
So do we need a solicitor, or is there a cheap way ?

Cheap way. It's very easy.

Have a read and follow the steps.

https://www.gov.uk/registering-land-or-property-with-land-registry/transfer-ownership-of-your-property

Well_excuse_me.

Many thanks, I'll read up on the morrow.

kinger101

I assume this is the house were you live (i.e., it is your private residence). Otherwise, you may have to pay CGT.

agrinnall

In what way is there no IHT problem? Are your total assets below £325K/£650K/whatever the limit for property going to offspring is?

The other thing to think about is possible deprivation of assets, although as we have no indication of your age and state of health there's no way to know whether that could become an issue or not.

xylophone

This couple own their own home (mortgage free) in which they are currently living with their son.

It is therefore their PPR and there will be no CGT on sale/gift.

They have sufficient cash to buy another house outright and support themselves in it. One assumes, therefore, that they have income from employment/ pensions/investments etc.

With regard to IHT, it seems that they will have the double exemption to use (£325,000 per person) and, since they are buying another family home, the possibility of benefiting from the upcoming allowance as described below?

https://www.gov.uk/government/publications/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band

Once they have moved to a new PPR, (presumably owned as tenants in common), should either of them need means tested benefits (including council funded care), the normal rules would apply.

As the couple are (one assumes), in normal health and have sufficient means to buy their new home outright and support themselves in it, I doubt that there would be any problem with the council looking at "deprivation of capital".

All this said, the couple will presumably be seeing a solicitor about their wills etc and the buying of their new home (if not the disposal of the old one) and can check out the question of IHT etc at the same time?

Dan-Dan

xylophone wrote: »

This couple own their own home (mortgage free) in which they are currently living with their son.

It is therefore their PPR and there will be no CGT on sale/gift.

They have sufficient cash to buy another house outright and support themselves in it. One assumes, therefore, that they have income from employment/ pensions/investments etc.

With regard to IHT, it seems that they will have the double exemption to use (£325,000 per person) and, since they are buying another family home, the possibility of benefiting from the upcoming allowance as described below?

https://www.gov.uk/government/publications/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band

Once they have moved to a new PPR, (presumably owned as tenants in common), should either of them need means tested benefits (including council funded care), the normal rules would apply.

As the couple are (one assumes), in normal health and have sufficient means to buy their new home outright and support themselves in it, I doubt that there would be any problem with the council looking at "deprivation of capital".

All this said, the couple will presumably be seeing a solicitor about their wills etc and the buying of their new home (if not the disposal of the old one) and can check out the question of IHT etc at the same time?

Makes you wonder why then they would ask if it can be done in a `cheap way` rather than in the `most cost effective but with the best advice way`

Well_excuse_me.

xylophone wrote: »

This couple own their own home (mortgage free) in which they are currently living with their son.

It is therefore their PPR and there will be no CGT on sale/gift.

They have sufficient cash to buy another house outright and support themselves in it. One assumes, therefore, that they have income from employment/ pensions/investments etc.

With regard to IHT, it seems that they will have the double exemption to use (£325,000 per person) and, since they are buying another family home, the possibility of benefiting from the upcoming allowance as described below?

https://www.gov.uk/government/publications/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band

Once they have moved to a new PPR, (presumably owned as tenants in common), should either of them need means tested benefits (including council funded care), the normal rules would apply.

As the couple are (one assumes), in normal health and have sufficient means to buy their new home outright and support themselves in it, I doubt that there would be any problem with the council looking at "deprivation of capital".

All this said, the couple will presumably be seeing a solicitor about their wills etc and the buying of their new home (if not the disposal of the old one) and can check out the question of IHT etc at the same time?

Pretty much our position.
Its early days yet, but I didnt want to even start without a quick check we were going the right way. The other option is to stay where we are and gift a large deposit.

Brock_and_Roll

It seems to me that Deprivation of Assets is the main consideration here.


The OP elsewhere ways that they pay no income tax, is approaching retirement and will be in receipt of the state pension.


Of course it depends on the value of the new house, but care costs can run from £500-£1000 per week so in the hopefully unlikely event that the OP or partner needs such care in the next few years, you can at least expect the relevant local authority to a) spot it and b) look into such an asset giveaway.