deed of gift and rent

getmore4less

Don't forget the reservation part of the "gift with reservation" will not be all the house as the donee lives there.

Mojisola

Lizzey wrote: »

Our house is worth maybe in the region of £200,000 at most, my worry is that it may not be my house now and I've been under the impression that it was held in my name since the deed of gift 30th May 1996

getmore4less wrote: »

Don't forget the reservation part of the "gift with reservation" will not be all the house as the donee lives there.

Unless Lizzey's mother has stacks of cash, her estate isn't going to anywhere near the IHT threshold so the gift with reservation is irrelevant.

Lizzey

Thanks for the replies everyone, everything just came at once and to be honest, I felt overwhelmed. I think i will arrange to meet with the solicitors who drew up the contract 21 years ago - they may have registered the property with the Land Registry as part of their service and I would like my husbands name adding to the deeds if possible, just to make everything as clear and uncomplicated for the future - it will give me a chance to hear from them something I may not have considered myself. Thank you again, if you think of anything that would be useful for me to consider, I would be very grateful

xylophone

they may have registered the property with the Land Registry as part of their service

It is quite likely that the registration was done in 1996 - you can easily check the LR details yourself.

https://www.gov.uk/search-property-information-land-registry

It would appear that the property is now in your sole ownership and you wish to change this to tenants-in-common with your husband?

https://www.gov.uk/joint-property-ownership/overview

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

With regard to your mother's having transferred ownership into your name to mitigate IHT, it is indeed the case that unless a market rent was paid, this was a gift with reservation.

However, your mother has a personal IHT allowance of £325,000 and it is possible that there is also a spouse allowance that she can claim.

http://www.pruadviser.co.uk/content/knowledge/technical-centre/transferable_nil_rate_band/

Your solicitor should be abel to assist with all the above.

xylophone

How much is her estate worth? With the new property allowance, you need to effectively have an estate over £1m to pay IHT, so she may not need to do anything.

Not wholly accurate......

http://www.taxadvisermagazine.com/article/residence-nil-rate-band-outline

Bluebirdman_of_Alcathays

xylophone wrote: »

Not wholly accurate......

http://www.taxadvisermagazine.com/article/residence-nil-rate-band-outline

I know it's not wholly accurate. It wasn't meant to be anything other than indiciative, in an attempt to assuage someone who had clearly got themselves in a state when they needn't have. I did also say they should see a tax advisor for proper qualified advice.


I save my proper qualified advice to the people that will pay me hundreds of pounds an hour for it. Anything on the internet should be taken with a large pinch of salt.

Lizzey

Thank you, mom hasn't any substantial savings just a bit of rainy day money, she has state pension and spends this on household bills and food etc. So it looks as though well below the threshold set

PersianCatLady

According to this link here - http://www.jennings-solicitors.co.uk/deed-of-gift-trust/ - when a property is given through a deed of gift then someone is added to the title of the property but the original owner must still remain on the title as well.

Mojisola

xylophone wrote: »

It would appear that the property is now in your sole ownership and you wish to change this to tenants-in-common with your husband?

Or joint tenants.

Lizzey

The solicitors who drew up the Deed of Gift have just sent me a copy of the document stating "please find herewith your copy of the deed of gift dated 30 May 1996 which shows evidence of your ownership of the property". I'm still going to meet with them to discuss the future security etc. and check they have registered the property in my name - thanks again