home ownership when couple

UKSBD

I owned my own home before meeting my wife and it is in my name only.

I also own a 2nd property which is also in my name

We've been married nearly 20 years, does my wife now automatically own half of both properties, if not how do I make it so she does?

Do I just gift her half of each?
Are there any tax implications in this?
Do I need to do this?

da_rule

There is no automatic half ownership. If things between you go south, she may be able to argue she is entitled to a share of the other properties and it will be up for the courts to decide whether or not to award this.

If you currently live in one of these houses then it is also possible that she could argue that she has an interest as the result of a trust. If she has contributed towards the upkeep of the houses, bills and the mortgage etc then a trust could arise.

If you do want to gift your wife a share in each property it will be treated as a transfer. Therefore you will need to complete transfer deeds (TR1) for them and register the transfer with the Land Registry. If any of the properties have mortgages you will also need the lenders consent.

This should not give rise to any tax implications as gifts to spouses are exempt from both capital gains and inheritance taxes. It may also mean you can share and rental income (if the properties are tenanted) between you in order to reduce your individual tax burden.

UKSBD

da_rule wrote: »

This should not give rise to any tax implications as gifts to spouses are exempt from both capital gains and inheritance taxes.

Thanks, so if I die and leave both properties to my wife there is no inheritance tax to worry about, would that apply to both properties even though only one is our home?

I've since read you can leave to spouse and not worry about inheritance, but do you also have a £350k threshold too on top of what uou leave to wife?

ie.
This mean you can leave most to wife but still leave up to £350k to children (or someone else) too?

xylophone

See a STEP solicitor concerning your will.

https://www.step.org/member-directory

https://www.moneyadviceservice.org.uk/en/articles/planning-what-to-leave-in-your-will

Doozergirl

xylophone wrote: »

See a STEP solicitor concerning your will.

https://www.step.org/member-directory

https://www.moneyadviceservice.org.uk/en/articles/planning-what-to-leave-in-your-will

I agree. There is an awful lot to think about and each person has to take their own circumstances into account. It isn't straightforward.