Transfering house to child

November2

Thanks for replies, I had read the Saga page before coming on here but didn't understand parts of it, I thought Martin may have a dedicated page or something to add to it. A friend of my Brothers has recently had terrible trouble due his parents dying without a will, and my parents who have always ignored such things are now in the process of sorting themselves out, ie power of attorney, will etc. They own their house and I live there too and they want to ensure I keep the house after they die so I can continue living in it. The house is worth around £200,000 and they have no other assets, and just a couple of thousand pounds in savings. Transferring the house over to me seemed the most easy and logical thing to do.

AdrianC

When somebody dies without a will, then the rules of intestacy are clear.
https://www.gov.uk/inherits-someone-dies-without-will
A will is only NEEDED if you don't want that to apply.

As and when your parents die, their estates are small enough not be subject to IHT, so there's no reason there why the property shouldn't reach you, without being transferred now.

The ONLY reason to transfer it now is an attempt to circumvent them using their own assets to pay for their care while they're still alive - and that's precisely what the rules around deprivation of assets are designed and intended to stop.

To put it bluntly, why should council tax payers in your area subsidise your inheritance...?

PoA, though, is a much more important question. It's also a much simpler one to answer. There's no reason not to.

Mardle

My local Age UK offers free Legal Advice sessions. Check to see if you have the same service local to you.

Money_maker

What if you get married then split up? The house will be part of your marital assets and need to be sold. Where would they live? What if you had an illness requiring care - the house may need to be sold to pay for it. Easy and logical aren't always so once you've scraped past the surface.

November2

Thanks. Why are things always so complicated. Thought Martin would have a page as I received an email all about wills and power of attorney last week. My Brother's friend lost his home due to siblings forcing him to sell. My parents want me to be able to continue living in the house and not have to sell when they die. I'll have a look at Age Concerns page, maybe making a Will will be sufficient.

G_M

November2 wrote: »

Thanks for replies, I had read the Saga page before coming on here but didn't understand parts of it, I thought Martin may have a dedicated page or something to add to it. A friend of my Brothers has recently had terrible trouble due his parents dying without a will, and my parents who have always ignored such things are now in the process of sorting themselves out, ie power of attorney, will etc. They own their house and I live there too and they want to ensure I keep the house after they die so I can continue living in it. The house is worth around £200,000 and they have no other assets, and just a couple of thousand pounds in savings. Transferring the house over to me seemed the most easy and logical thing to do.

Then the simplest thing for your mum to do is towrite a will! Leaving the property to you. Sorted.

This of course assumes that
* there are no other children who might feel ignored if she leave it to you, not them
* there is no Inheritance Tax bill which the estate would have to pay, or you could pay. But since you say the total estate will be just over £200,000 that should not apply.

AdrianC

November2 wrote: »

Thanks. Why are things always so complicated. Thought Martin would have a page as I received an email all about wills and power of attorney last week. My Brother's friend lost his home due to siblings forcing him to sell. My parents want me to be able to continue living in the house and not have to sell when they die. I'll have a look at Age Concerns page, maybe making a Will will be sufficient.

Wills are what happens with money when somebody dies.
No will = intestacy rules.

PoA allows the attorney to make decisions on behalf the person in relation to their finances or their health. PoA stops the instant the person dies.
No PoA = you can't do anything with your parents' finances/health

If you have siblings, they really need to make a will.
If you do not have siblings, then a will changes nothing.

If your parents need to spend their money in their lives, then they need to spend their money in their lives - the house may have to be sold to pay for their care, in which case there's no house TO leave you.

If they transfer the house to you in an attempt to avoid having their care funded by their own money, then that's where the fun starts...

November2

Thank you for all your advice.
My parents are going to see someone for advice as suggested as some of the things we are finding difficult to fully understand.

xylophone

Do your parents own the property as tenants-in-common?

If so, each of them will be able to leave the share of the home by will to you.

Normally, a life interest in the share would be left to the surviving spouse - the solicitor will advise.

teddysmum

My husband and I would like to think that one of our sons would live in this house when we are both gone, but, in reality, if the last of us to go needs care, then the house will need to subsidise this care.


The reason you give for the transfer is , as mentioned above, exactly what the council, who have to provide care for those who genuinely don't have assets, would object to.


My sister had a work colleague who was given a house by her aunt, who a couple of years later went into care. The council threatened the colleague with the prospect of a court case, which could have been more costly than the value of the house (having to pay for both sets of legal fees), so she arranged to have it sold and the money go towards care.