Dividing House Deeds

QuestionsQuestions

Hi.
Looking for advice.

My husband and I are entering our dotage. In order to protect our main asset (our house) I would like to split the deeds 3 ways. 25% for my husband and I and 50% to our only son. I am not concerned about him selling the house from under us I just want to ensure our property goes to our grandchildren.
Anybody done this and have any advice please

kidmugsy

Don't. Oh dear, don't. Don't entertain the idea of gambling your house on DIY tax avoidance.

If he divorces you lose the house. If he goes bankrupt you lose the house. If neither of these happen you may well increase his tax bill on your death.

See a lawyer.


Lay your hands on a copy of the financial pages from this morning's Telegraph; study and absorb!

QuestionsQuestions

Hi.
Yes we are going to see a solicitor in the week. I wanted my son to join us so that we can explore our options and the solicitor said he couldn't so I am trying to get some advice before we go so i know what sort of questions to ask.
I am not concerned about the divorce part he is not married. Would bankruptcy affect this as my son would only own half the house.

Kidmugsy can I ask if you have a legal background and what would you suggest in order to achieve what we want?

Thanks again

Brynsam

QuestionsQuestions wrote: »

Hi.
Yes we are going to see a solicitor in the week. I wanted my son to join us so that we can explore our options and the solicitor said he couldn't so I am trying to get some advice before we go so i know what sort of questions to ask.
I am not concerned about the divorce part he is not married. Would bankruptcy affect this as my son would only own half the house.

Kidmugsy can I ask if you have a legal background and what would you suggest in order to achieve what we want?

Thanks again

First suggestion is go and see a different solicitor - you can take whoever you want with you! That said, there may be some sense in having a conversation at which your son is not present, because there may be questions the solicitor wouldn't want to ask in front of him, not least because you could feel uncomfortable answering them - but it is not for a lawyer to say he can't join you.

Not clear why you think making your son a 50% owner will ensure your grandchildren inherit the house. It is nothing like as straightforward as you hope, I'm afraid - complications set in when you look at tax, evasion of care home fees, any possible future sale of the house while more than one 'owner' is still alive...

The good news is that you don't need to do the homework ahead of time. Your solicitor is going to be the best person to advise you on whether what you think you want to achieve is viable and what the downsides are. That's what you are paying them for.

Marcon

QuestionsQuestions wrote: »

My husband and I are entering our dotage. In order to protect our main asset (our house) I would like to split the deeds 3 ways. 25% for my husband and I and 50% to our only son. I am not concerned about him selling the house from under us I just want to ensure our property goes to our grandchildren.

Which country of the UK do you live in? How much is the house worth?

Why do you believe that doing this will ensure your grandchildren inherit the house? You could each leave a life interest to your son in your wills, rather than making him a partial owner now, with ownership reverting to the grandchildren when he dies (although there are issues to consider such as tax and care home fees, which your solicitor should fully discuss with you).

Further things to think about: do your grandchildren actually want to inherit the house? Does your son want to be a 'part owner' of your property - it would preclude help from certain help to buy schemes e.g. those aimed at first time buyers, those who already own or part own a property.

It would help your solicitor if you explained in your own words what you are trying to achieve and why you think your proposed route would achieve this. This approach is always helpful, because it highlights very quickly any misunderstandings clients may have about how things like tax impact on their proposed course of action - and often helps to clarify their thinking (i.e. they realise they might just be mistaken!) without the solicitor having to be the bearer of bad news...

AnotherJoe

QuestionsQuestions wrote: »

Hi.
Looking for advice.
My husband and I are entering our dotage. In order to protect our main asset (our house) I would like to split the deeds 3 ways. 25% for my husband and I and 50% to our only son.

Protect it from what, precisely?

QuestionsQuestions wrote: »

I just want to ensure our property goes to our grandchildren.

How does signing 50% to your son ensure it goes to your grandchildren?
It would seem to me it ensures it goes to your son?

AnotherJoe

QuestionsQuestions wrote: »

Would bankruptcy affect this as my son would only own half the house

Of course. Theres currently a thread going where the couple are having to sell the house because the husband is bankrupt. The husbands 50% will be taken. In this case, you two could have the house sold from under you.

QuestionsQuestions wrote: »

I am not concerned about the divorce part he is not married.

Currently. He may get married later. You cannot rule it out.

AnotherJoe

Brynsam wrote: »

First suggestion is go and see a different solicitor - you can take whoever you want with you!

From the solicitors POV, they are looking to ensure there is no undue influence. This protects everyone, including the solicitor who otherwise may be challenged that they did not see the parents alone and couldn't rule out undue influence. Seems like a very wise course of action to me.

TonyMMM

Today's Telegraph Money section has an interesting article about why this is such a very bad idea in most cases and the unforeseen consequences it can have (potentially increasing tax liability for instance).

Worth a read.

kidmugsy

QuestionsQuestions wrote: »

Kidmugsy can I ask if you have a legal background

How dare you?

QuestionsQuestions wrote: »

what would you suggest in order to achieve what we want?

I dare say that your lawyer will explain that if you currently own the house as "joint tenants" it might be better to own as "tenants in common". (That's if you own in England & Wales.)

He will probably want you to clarify whether you want the property itself to go to your grandchildren, or do you want its value to go to them.

He might warn you of the perils of trying to evade the cost of care.

He will probably urge you not to give away any part of your only substantial wealth. He might also try to describe how to use your wills - including the possibility of setting up Trusts - to achieve whatever exactly it is that you hope to achieve.

I really do suggest you read that Telegraph article.

Marcon

kidmugsy wrote: »

How dare you?

That's a no, then?