Transfering house to child

Fran61

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

I think what you're finding hard to understand is that you can't wriggle around the rules regarding long term care. There is no golden rule that a child deserves to inherit their parent's house regardless of whether the parents need money for something like care. It's true that they'd like to give it to you, and true that you'd like to inherit it. But if they need care then that needs paying for - unless you're prepared to care for them yourself.

shaunandelly

Fran61 wrote: »

I think what you're finding hard to understand is that you can't wriggle around the rules regarding long term care. There is no golden rule that a child deserves to inherit their parent's house regardless of whether the parents need money for something like care. It's true that they'd like to give it to you, and true that you'd like to inherit it. But if they need care then that needs paying for - unless you're prepared to care for them yourself.

I think people do understand that tax is tax and some people find it convenient to ignore the ideologies in some social care spending whilst quoting rules in rules when it suits them in another area.

getmore4less

AdrianC wrote: »

There's a million and three threads covering this.

On a practical level, if the property is registered at the Land Registry, and there's no mortgage - then the paperwork is very straightforward.

BUT... your parents are elderly. If they pass away during the seven tax years after the gift, then its value will still be part of their estate for IHT purposes (albeit tapering over that period). If they need residential care, the value may well be taken into account for the purposes of deciding whether they or the LA pays for that care. There may be other tax implications, too, for a gift of that value.

There is no tapering of the value of an asset for IHT purposes.

The is potential for tapering of the IHT due on a gift but looks like this is a couple of parents therefor we are looking at the house being worth over £850k now and upto £1m soon before any IHT would be due anyway.

silvercar

Big difference between protecting the home of someone who lives in their parent's house and wants to continue to do so and someone who has moved away and is purely eyeing up their future inheritance.

Mr_Sanjeev

Hi I'm totally new to this and looking for a thread that may help me with regards to signing property over from my mother to me and the other way round. A house swap basically. Interested in stamp duties etc thanks

00ec25

Mr_Sanjeev wrote: »

Hi I'm totally new to this and looking for a thread that may help me with regards to signing property over from my mother to me and the other way round. A house swap basically. Interested in stamp duties etc thanks

then start your own thread instead of digging up one from 6 months ago meaning a few people will probably start replying to the first post on here not your post as they won't notice the date