Gifting a property

Jess._Macklin

I co-own my property. Me and the other owner would like to give the property to my daughter and then remain living in it.

I don't know how to go about this though...
Money is tight and I was wondering if there was a way to give the property over easily and cheaply.

Also I don't know what the difference would be if gifting the property and signing over ownership?? Surely these are the same thing?

Would each party need a solicitor or could we just have one that mediated between us working more as a signatory/ independent party that oversee's prceedings?

Any advice/help would be much appreciated

getmore4less

Why?

What are you trying to achieve.

If you own the place with no secured debt it is easy to do.

dunstonh

Me and the other owner would like to give the property to my daughter and then remain living in it.

Why?

it is not a common transaction and only tends to be made by people that think they are avoiding some tax but fail to realise that it doesnt avoid that particular tax and can actually introduce new taxes in addition to having to pay the original tax. Doing it is quite easy. The reasons are likely to be the issue.

Browntoa

If to avoid care costs it's deprivation of capital

As pointed out if it's not done correctly you are likely to hit all kinds of tax problems

Thrugelmir

Jess._Macklin wrote: »

I co-own my property. Me and the other owner would like to give the property to my daughter and then remain living in it.

Is there an outstanding mortgage on the property?

robsmg

If you are doing it for IHT purposes, the taxman will still get the right amount unless you are paying your daughter as it will be classed as a 'gift with reservation'.

If it is for IHT, the nil rate band for residential properties is going to be increasing in the next couple of years from £325k

• £100,000 in 2017 to 2018
• £125,000 in 2018 to 2019
• £150,000 in 2019 to 2020
• £175,000 in 2020 to 2021

if you do gift her the property, get tax and legal advice before doing it to make sure you are ok. Last thing you want is a massive tax bill

Keep_pedalling

If money is tight why on earth would you give away you home?

If your daughter gets divorced, goes bankrupt or dies before you you could end up homeless.

csgohan4

money and family don't mix, what if the son in law wants you out or worse the daughter wants you out if your relationship breaks down? it will and does happen.


Keep your guaranteed tenancy I,e your own house and make adequate IHT planning with a professional.

getmore4less

OP has not been back to the forums since asking the question(not even to look).

Jav1983

I bought a commercial property with a flat above it with the view we would live their and also set up a business from there. After purchase i landed my self a really good job and therefore the property didnt suit us anymore. However my parents decided they would like to buy it off us. Because my dad was already self employed it was difficult for him to get a remortgage so we decided between us that we would just swap properties and carry on paying the mortgages as they were identical in amount and as it was my parents we were not bothered the properties not being in the correct names. A couple of years ago we sold the house which was in my parents name and purchased another property in my name. We have now paid off the mortgage on our house and my parents have also paid their mortgage on their house. The problem is both the properties are in my name and both are cash. I am wanting to transfer my parents property to them and i have been to see a solicitor who said it can be 'gifted' by me to them but i need to check with an accountant if i would need to pay tax. I dont have an accountant and solicitor not very forthcoming i just need advise on how to go about this. I wish we had just done things the proper way in first place save all the hassle now. TIA for any advice

dunstonh

I dont have an accountant and solicitor not very forthcoming i just need advise on how to go about this.

The solicitor is there to deal with the legals. They are not there to deal with the tax. That is what you or an accountant does. So, its not fair to accuse the solicitor that way when tax is not their remit.

You will likely pay capital gains tax on the gain on the market value from when you first owned it. Although there are possible caveats to that. Best you see an accountant who can run through the scenario and provide you the figures.