Does being on another deed count as a second home?

AnotherJoe

cam1970 wrote: »

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.

The opposite. What would have been a tax free inheritance (eventually) unless the house is worth a lot, becomes an issue with CGT assuming the house rose in value over the time.

Your wife also becomes a landlord with all the legal responsibilties.

And most importantly, assuming mother continues to live there, such a transaction is null and void as far as IHT is concerned anyway .

And its also null and void in terms of the house not being counted as hers, should she need to go into care.

cam1970 wrote: »

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 house and purchase another?

No

Ferrous

Thanks for all the replies. Turns out I didn't have all the pertinent facts and it was a bit more convoluted. Long story short it seems it's all null and void as she was a minor and was ineligible for it to go through.

xylophone

it seems it's all null and void as she was a minor and was ineligible for it to go through.

It depends on whether the mother gifted the share into bare trust - see above.

SDLT_Geek

A purported transfer to a minor can be effective to transfer the beneficial interest even though the legal title itself does not pass, so the problems identified might still apply.