Transferring ownership of property

andiex

My mother is looking into transferring the ownership of her property into my name to avoid complications later in life in the event of her dying or going into care. There is no mortgage on the property. Is it straightforward to change the name on the deeds at what cost and is there any other implications?

Thanks

NYM

Deprivation of Assets ?

davidmcn

andiex wrote: »

My mother is looking into transferring the ownership of her property into my name to avoid complications later in life in the event of her dying or going into care.

It may not avoid the complications you hope it will. If she's still living there it's likely to be considered as still her property for the purposes of Inheritance Tax or assessing her capital for care costs.

Pixie5740

If your mother goes into care then this will be considered a deliberate attempt to deprive herself of capital assets and therefore the value of the property will still be considered.

Secondly, depending on the value of your mother's estate she might actually be setting you up for a double tax whammy of IHT and CGT.

Your mother should seek professional advice rather than trying to DIY off the back of some advice on an internet forum.

xylophone

Your mother lives in Scotland?

http://www.careinfoscotland.scot/topics/care-homes/paying-care-home-fees/deprivation-of-capital/

http://www.saga.co.uk/magazine/money/personal-finance/giving/what-you-need-to-know-about-signing-property-over-to-your-children#

Kynthia

If you don't live there you will be liable for CGT on the property. Plus if you want to buy anywhere else you'll be hit with the second property higher stamp duty.

If you should divorce or go bankrupt in her lifetime her home is at risk. It seems risky for her without getting specialist advice
Age Concern probably have information leaflets about this topic.

troubleinparadise

Does your mother plan to continue living there (without you) after the proposed gifting of her property to you?

If so, she should pay a market rent to you and live for a minimum 7 years after the gift to avoid the house being included in her estate for inheritance tax, and you will then have to pay income tax on that rent.

Who will be maintaining the property if that is the case - will that be you or her?

If she gives you her property and continues to live there, she will be vulnerable should you be declared bankrupt, or perhaps divorce - the property will be counted as one of your assets, and she may lose the roof over her head. Equally, the two of you may fall out, or you might wish to move in yourself, or sell the property. Once again, she risks losing her home.

She should take legal advice about the implications. It sounds a clever idea, but leaves her in a very vulnerable position. You say it would avoid complications should she die or go into care - I'm afraid I'd say it could be very much more complicated than that (which isn't complicated) but this way you stand to benefit and she loses her home.

http://www.saga.co.uk/magazine/money/personal-finance/giving/what-you-need-to-know-about-signing-property-over-to-your-children#