Added son to house title.

Ownerofawreck

When I bought my house last year I added my son to the deeds to make life easier in the future and so that he will gain something for all my years of work.
Now I realise that this could be a big mistake as he was looking at the Help to Buy scheme and cannot join it due to being joint owner.
It seems that in trying to make things easier for him I have made them more complicated. My son had given me money to buy my previous home from an inheritance and refuses to be repaid so this was to cover that also. Should I leave things as they are or what should I do? Any advice please?

Cakeguts

Even if you take him off the deeds he still won't get the benefits of being a first time buyer as it is really for first time owners and he isn't one. He will have to pay an extra 3% in stamp duty when he buys though if his share of your house is worth more than £40k.

Fire_Fox

Ownerofawreck wrote: »

When I bought my house last year I added my son to the deeds to make life easier in the future and so that he will gain something for all my years of work.
Now I realise that this could be a big mistake as he was looking at the Help to Buy scheme and cannot join it due to being joint owner.
It seems that in trying to make things easier for him I have made them more complicated. My son had given me money to buy my previous home from an inheritance and refuses to be repaid so this was to cover that also. Should I leave things as they are or what should I do? Any advice please?

Have a solicitor update your will and prepare Lasting Power of Attorney documents.

csgohan4

To those reading in future, if your worried about IHT, seek professional Advice and not do things without looking at the consequences.

Deprivation of assets is also something that comes up very often which is unlikely to be the case here.

Now the Son has lost all FTB perks and will cost him more in the long run

G_M

This sems to be becoming ever more common. Endless threads from people who have either passed property to their offspring, jointly purchased, or are considering doing so.

The aim is usually to

* avoid inheritance tax, and/or
* make elderly home-owners eligible for local authority care costs
* get a child 'on the property ladder'
or similar

Understanding the full implications is essential before making a decision and that usually means getting professional advice.

Achieving the above aims (and avoiding Capital Gains Tax too!) is not easy. If it were, the government would never receive any tax revenue as we'd all be doing it!


And the unforseen downsides can come back to bite you!

Mojisola

Ownerofawreck wrote: »

When I bought my house last year I added my son to the deeds to make life easier in the future and so that he will gain something for all my years of work.
Now I realise that this could be a big mistake as he was looking at the Help to Buy scheme and cannot join it due to being joint owner.
It seems that in trying to make things easier for him I have made them more complicated. My son had given me money to buy my previous home from an inheritance and refuses to be repaid so this was to cover that also. Should I leave things as they are or what should I do? Any advice please?

When he realises how much you've cost him by doing this, he may be willing to accept his cash gift back from you.

MEM62

Ownerofawreck wrote: »

When I bought my house last year I added my son to the deeds

Better hope he never goes bankrupt.

Ownerofawreck

I didn't realise I had posted this twice.
Fire Fox - I haven't bothered with a will as my only asset is the house and LPA's are blooming expensive, just done an health and welfare for my mother. I can make a simple will but will see if I can find a cheaper solicitor if an LPA will help.
csgohan4 - I did talk it through with the Solicitor when buying the house, their only comment was of children in similar situations who ripped off their parents. I am aware of deprivation of assets as prior to my 2nd stroke I worked in for the then Benefits Agency. But it did not occur to me at the time how this could seem, my son was at uni so although his main residence he was not living in the house and neither of us were claiming benefits. My son says he doesn't care although he is unaware of the cgt etc as he is more concerned that I am somewhere safe. He may change his mind in the coming days!
G.M - Unless I win the Lotto I will not be worrying about IHT.
I hadn't thought about care but I live in Scotland so things are different should I need it luckily.
I hadn't thought about the property ladder or anything other than making life a little easier for my boy at what may be a difficult time, and hopefully make sure he gains from my years of working. Prior to this decision I had dealt with a no will estate and a willed estate so it seemed like a good idea.
Mojisola - yeah possibly, sadly for him though, I can no longer afford to pay him back due to a health problem forcing me to stop work for the time being.
MEM62 Funnily enough, shortly after all the legal stuff was done this was mentioned, well it wasn't really funny.
I have actually sold that house and bought another as joint tenant due to not being able to work so I have something to live on. Then recently I realised that I had probably messed up his being a FTB and help to buy etc., I shall take his name off if it is of benefit to him but will take advice regarding CGT before I tell him.
Thank you all for your comments.

Ownerofawreck

Cakeguts - Yes, I realise that now which is a shame as not his fault. Then again I never benefited from any help to buy as it wasn't around in my day but, I did have miras, so I'm sure he will get through. Will start saving to help him with the extra stamp duty just in case. Thank you for your comment.

00ec25

Ownerofawreck wrote: »

csgohan4 - I did talk it through with the Solicitor when buying the house, their only comment was of children in similar situations who ripped off their parents. I am aware of deprivation of assets as prior to my 2nd stroke I worked in for the then Benefits Agency. But it did not occur to me at the time how this could seem, my son was at uni so although his main residence he was not living in the house ....


I have actually sold that house and bought another as joint tenant due to not being able to work so I have something to live on. Then recently I realised that I had probably messed up his being a FTB and help to buy etc., I shall take his name off if it is of benefit to him but will take advice regarding CGT before I tell him.
Thank you all for your comments.

so you have sold a property which you and son jointly owned, but your son was liable for CGT on that property as, for at least of his ownership, it was not his sole main residence since university accommodation is regarded as the main residence for tax purposes

so has your son worked out if he had any CGT to pay on that sale, or have you just added tax evasion to his list of problems?

Wanderingpomm

You’ve also screwed him out of his first time buyer stamp duty discount