Moving joint property into sole name

katy123

Jenniefour wrote: »

Notice gets filed with the Land Registry so the loan is repaid when property is sold. It's certainly an option to consider if Grandad if short of money.

WOuld you know the in's and out's to this? i.e. is it a charge or restriction and the forms required? I've heard about it before but no one seems to know how to do it.

Jenniefour

katy123 wrote: »

Probate won'[t be needed as everything is in joint names with dad already. Why does everyone default to avoiding fees, only a small proportion of deaths actually go into care. There is nothing wrong with making a gift to his own son.

Generally speaking, no there isn't. But in some cases like this, the intention is either to try and avoid care home fees (and, yes, you're right, not many people do need to go into residential care) or there's a will (or possible intestacy that would mean other people would get a share), and someone is not happy with it/greedy, then getting the property disposed of in this way cuts through it all very nicely.

I'm not saying the above are your intentions here, just pointing out, that since there is no obvious and wonderful benefit to your grandad himself, it's hard to justify that course of action.

Just to add, Katy, we are a bit sceptical on here and you don't have to look very far through the posts to see where someone has been on the receiving end of not very honourable motives where a property has conveniently changed ownership, or eyeing up a way of getting hands on a property without having the decency to wait until someone passes away.

Jenniefour

katy123 wrote: »

WOuld you know the in's and out's to this? i.e. is it a charge or restriction and the forms required? I've heard about it before but no one seems to know how to do it.

I don't know the in's and out's of it but it is certainly possible. I would post again on the loans board and ask them.

Keep_pedalling

katy123 wrote: »

Probate won'[t be needed as everything is in joint names with dad already. Why does everyone default to avoiding fees, only a small proportion of deaths actually go into care. There is nothing wrong with making a gift to his own son.

The default to avoiding fees is because this is nearly always what people doing this are trying to avoid. The reason you give for doing it is simply bonkers.

Your GF needs to make sure he can live out the rest of his life in comfort and security, and owning your own home provides a lot of that security, and provide the flexibility that he can sell it to downsize or move into rented sheltered housing if the need arises.

Whatever they do there is no way your GF should do anything without taking independent legal advise first.

getmore4less

katy123 wrote: »

Thanks, I am certain a gift can be made by grandad to dad. It's grandad's PPR so no tax issues (cgt & iht).

How can dad give grandad a loan and secure against the property?

There is always a CGT and IHT assessment even without probate.

Is Dad living in the property as well?

if not then you are creating a potential CGT liability as there will not be any PRR relief on the gift once the transfer happens, also gift with reservation(not a problem if below the estate is below the nil rate band)


how much is this house worth?
some of the comments wil be because there si no context re IHT CGT etc.

securityguy

katy123 wrote: »

To avoid probate.

I asked why your grandfather would want to do this. Probate isn't his problem: he'll be dead. It's not much of a problem, either, as others have pointed out. On the other hand, your father will be liable for CGT on his share when or if he comes to sell it, which he otherwise wouldn't have been, and as it's a gift with reservation there is still a potential IHT liability.

badmemory

Is your father married or likely to be? If he is & he divorces then your grandfather could lose a quarter of his house or your father more than half his.

katy123

getmore4less wrote: »

There is always a CGT and IHT assessment even without probate.

Is Dad living in the property as well?

if not then you are creating a potential CGT liability as there will not be any PRR relief on the gift once the transfer happens, also gift with reservation(not a problem if below the estate is below the nil rate band)


how much is this house worth?
some of the comments wil be because there si no context re IHT CGT etc.

house worth c. £60k.GRW won't apply as you rightly pointed out, below NRB. Dad won't be living at property, just grandad

katy123

badmemory wrote: »

Is your father married or likely to be? If he is & he divorces then your grandfather could lose a quarter of his house or your father more than half his.

My dad is married, 35 years +, a re marriage is extremely unlikely.

Mojisola

katy123 wrote: »

Dad won't be living at property, just grandad

If life changes for your Dad and he needs to claim means tested benefits, the value of his share of the house will be taken into account and he won't be eligible for help.