Advice please on transferring property by gift and remaining in occupation

Maria1969

Hi, I'm attempting to complete land registry form TR1 as my mother wishes to transfer her home to me as a gift, and remain in the home until her death.
I believe this is called a life interest. Can anyone supply me with the standard clause for this to input in the form under Additional Provision?
The form is quite straight forward apart from this. I was thinking along the lines of "xxx will retain a lifetime interest in the property and will remain in occupation until her death, or she chooses to vacate the property".
Is this sufficient or do you need specific wording?
Any advise would be appreciated.

G_M

What is the point?
It achieves little.


Gift with reservation.

SallyDucati

Not quite on point, but just be aware that if your mother needs care within a few years (I think 7), the value of the house will still be taken into consideration for any government/local authority funding you may wish to apply for as it could be seen as a deprivation of assets.

Of course I really do hope that isn't needed to be the case!

foxy-stoat

Or just get her to make a Will - it will save a few hundred pounds and safe guards her right to live there....unless she is doing it to avoid paying care home fees.

Catswhiska

Councils can go back a lot further than 7 years for deprivation of assets

getmore4less

She can't do both "gift it to you" and "create a life interest".

The life interest will need a trust.

The problem is that this trust will get taxed.

kingstreet

Catswhiska wrote: »

Councils can go back a lot further than 7 years for deprivation of assets

Yep. "Foreseeable need" doesn't have a fixed timescale attached.

AnotherJoe

There is almost certainly no point to this, and most likely your mothers amateur hour attempt to evade care fees will land you with a capital gains charge which you wouldnt have got had she just left it to you in her will. It will also be pointless as far as evading IHT.

xylophone

This will not work for IHT purposes as it will be a "gift with reservation of benefit".

https://uk.practicallaw.thomsonreuters.com/9-382-5631?transitionType=Default&contextData=(sc.Default)&firstPage=true&comp=pluk&bhcp=1

If your mother needs means tested care, the council will be looking at "deprivation of assets".

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

00ec25

have you got the message yet? There is a time for trying to DIY to save money and there is a time for spending money on professional advise to avoid wasting money....

mother's generosity is going to backfire very expensively on you and her in due course.