Sign house over? Will or transfer of property?

alona1

Hi, hoping I've posted in the right place. My parents are looking to sign their house over to me and are wondering the best way to go about it without having to pay loads of charges/tax/fees.

Would they be best to sign it over in a transfer of land/title/deeds or leave it to me in their will? Or is there another way to go about it?

Thanks in advance

davidmcn

Really depends on whether they want you to have the house before or after they die! Why do they want to sign it over to you?

G_M

What is the purpose?

If they just want you to have the property after their deaths, then a will is the best way. It's what wills are for!

If they transfer it to you now there are all sorts of tax implications, for them AND you, especially if they remain living there...

alona1

Thanks for your replies. Yes they will remain there and it's so it will come to me once they pass. If it's left in a will, would there be any sort of fee's/taxes? The value is approx £300k. Thanks

trailingspouse

Also you need to think (very carefully) about deprivation of assets should they need care later in life.

G_M

alona1 wrote: »

Thanks for your replies. Yes they will remain there and it's so it will come to me once they pass. If it's left in a will, would there be any sort of fee's/taxes? The value is approx £300k. Thanks

Inheritance tax.

But they each get a tax free allowance of £325K. Of course that is on their entire estate, not just the property, so includes the car, their savings/investments, the holiday home in Spain, the gold watch, the helicopter etc

I suggest you read

https://www.gov.uk/wills-probate-inheritance

But all the above may well apply even if they transfer it to you now, in addition to all sorts of other considerations.

Tell them to write wills. About £120 for joint 'mirror' wills, or free if they use a charity.

eg
http://www.cancerresearchuk.org/support-us/donate/leave-a-legacy-gift-in-your-will/free-will-service

AnotherJoe

alona1 wrote: »

Thanks for your replies. Yes they will remain there and it's so it will come to me once they pass. If it's left in a will, would there be any sort of fee's/taxes? The value is approx £300k. Thanks

Their cunning plan to try not to have the house used for care home fees, should that come to pass, wont work.

If that's not their plan its pointless signing it over now and is likely to cause all sorts of issues later.

alona1

No that's not the reason why. I think they just want peace of mind it's all sorted and there won't be a huge amount of money to pay out of it for the pleasure. Sounds like the will would be less complicated. I will look into the inheritance tax thresholds, etc. Thanks

AnotherJoe

A will would also avoid you having to pay CGT when they eventually died and you sold the house. Say they live for another 20 years, CGT could be considerable.

Whereas from the figures you've quoted IHT isnt even on the radar let alone a consideration.

davidmcn

alona1 wrote: »

I think they just want peace of mind it's all sorted

It ought to give them less peace of mind as they'll be living in a property owned by someone else. What are they going to do when your creditors or a disgruntled ex-spouse come looking for your assets?

Linton

davidmcn wrote: »

It ought to give them less peace of mind as they'll be living in a property owned by someone else. What are they going to do when your creditors or a disgruntled ex-spouse come looking for your assets?

Or if you die first. Have you made a will?