Does being on another deed count as a second home?

Ferrous

Hopefully a nice easy question for all of you experts out there.

My wife and I are currently in the process of buying a home valued at around 300k. During a chat it came to light that my wife currently has her name on the deed of her mother's house, a precaution she took when my wife was a child to protect her if she needed care later in life. Does this mean that because she is named on another deed that we are liable for second home stamp duty?

I'm sure that can't be the case but I'd very much appreciate confirmation!

Cheers - F

ACG

You should ask your solicitor.
Personally, I think you will be liable for it, but I could be wrong.

Slithery

You could well be liable, it depends on the exact wording of the deed.

You need proper legal advice here not just random weirdos on the internet.

00ec25

Ferrous wrote: »

if she needed care later in life. Does this mean that because she is named on another deed that we are liable for second home stamp duty?

so the MIL made your wife a co-owner of her home in order that x% of the property would be protected from being sold to pay for MIL's care home fees because MIL no longer owned it, her daughter owned it instead.

and you are seriously asking does your wife own another property ?

budget for the higher rate SDLT, you'll need to !

SDLT_Geek

OP, as well as buying a home to live in, are you selling your existing home? If so the replacement exception might apply to your purchase, even if your wife has a share worth £40k or more in her mother’s property.

G_M

Putting aside the fact that the motivation behind this ruse back in her childhood was misguided and unnecessary, my quesion is: what Deed?


I assume you do not mean she is named on the Land Registry Title, as children under (18 I think? or 16?) cannot own property.


So I assume there is a separate Deed of some sort drawn up? What exactly does it say?

xylophone

A minor cannot hold real estate in his/her own name.

Therefore if there was a gift of a share, the mother would have held the share as bare trustee for her daughter while she was a minor. The beneficial owner of the property in trust was the daughter.

Your wife must tell your conveyancing solicitor who will no doubt want sight of the Trust Deed to establish the precise facts.

xylophone

And incidentally, the transfer of the property specifically to avoid paying care home fees would be deliberate deprivation of assets.....

https://www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-care-home/deprivation-of-assets/

p00hsticks

xylophone wrote: »

And incidentally, the transfer of the property specifically to avoid paying care home fees would be deliberate deprivation of assets.....

https://www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-care-home/deprivation-of-assets/

And , if MIL is still living in it without paying daughter a market rent, it means that the property is a gift with reservation so remains in MILS estate for inhritance tax purposes, whilst daughter potentially faces a large Capital Gains Tax bill when the property is eventually sold .

Tom99

Ferrous wrote: »

Hopefully a nice easy question for all of you experts out there.
I'm sure that can't be the case but I'd very much appreciate confirmation!
Cheers - F

I bet you wish you had never asked!

cam1970

Hi,


I am in a very similar issue. My Mother-in-law has just informed us she wants to pass the ownership of her house (no mortgage) to her 3 daughters (my wife). Just wondering:


1. Is there a benefit to doing this? Her rationale was inheritance tax, etc.


2. If we were to go for this and my wife as 1/3 owner of another house (we are listed together on our house) would we get screwed when it came to taxes, etc if we were to sell our current hosue and purchase another?


Thanks (sorry, not trying to highjack the thread!)