Tax Implications- Child's name added to property title

E201

Dear All,

My mother added my name to the title of our property in October 2015. We are now tenants in common. The property has been my main residence for over 10 years and I continue to live there. Would there be any tax implications for me in the event of my mother passing away and my selling/leaving the property?

Thank you for your reply.

Comms69

You've lost FTB status, any house you buy would be a second home and subject to extra SD, and as you are tenants in common, she can leave her half to anyone; you don't automatically get it

Mojisola

E201 wrote: »

My mother added my name to the title of our property in October 2015. We are now tenants in common.

The property has been my main residence for over 10 years and I continue to live there. Would there be any tax implications for me in the event of my mother passing away and my selling/leaving the property?

No, because it has been your main residence.

Who will inherit your mother's share of the property?

E201

Hi and many thanks for the reply. My other siblings will likely inherit my mum's share.

csgohan4

Future readers, please get financial advice before putting your kids names on deeds. Clearly has implications and losing your FTB's is not something to take likely.


You will not escape care home fees and IHT if applicable, the HMRC are not stupid. Deprivation of assets may also come into play.

AnotherJoe

csgohan4 wrote: »

Future readers, please get financial advice before putting your kids names on deeds. Clearly has implications and losing your FTB's is not something to take likely.
You will not escape care home fees and IHT if applicable, the HMRC are not stupid. Deprivation of assets may also come into play.

You may do if the house is also your residence.

csgohan4

AnotherJoe wrote: »

You may do if the house is also your residence.

sadly other's are not and if you need to release equity or siblings want out you can't afford to buy them out, then it becomes messy


Never mix family and money

xylophone

I am not sure that there would be a DoA case here. There is no indication that the gift was made in order to avoid care home fees.


There is no suggestion that his mother is very elderly/ill/ in need of care at the moment.

It may (for example) be a case of the OP's not being in a position to buy a property although his siblings are, so that the mother wishes to ease his path and recognise his contribution to the household (which he may have been making long before the gift).

It was after all his home before the gift and remains his home after it.

If he is making his due contribution to the household, it would not be considered a GWR for IHT purposes and would be a PET after seven years.

https://www.which.co.uk/later-life-care/financing-care/gifting-assets-and-property/legal-transfer-of-property-a4z0d8g9xpj9

E201

Thank you for the replies.

My mother is in relatively good health and doesn't want to go into a care home. I also contribute to the household e.g bills etc as I have been doing for the last 15 years or so. Should I be keeping receipts of purchases made for the house?

Thank you

Sea_Shell

E201 wrote: »

Hi and many thanks for the reply. My other siblings will likely inherit my mum's share.

If this comes to pass, without the house needing to be sold in the meantime, what's the long term plan here?

How many siblings do you have? Will they want to sell up? Will you? Will you want to buy them out? Will you pay them "rent" if you continue to live there?

These things have a habit of getting messy!!

xylophone

It would be a good idea to keep records of all your contributions to the household.

You have said that you have lived with your mother for at least fifteen years and have been contributing to the household all that time.

Your mother decided to gift you half of the property in view of your contributions/help/assistance for all the time you had lived with her.

You do not mention your age.

Were your mother to need to go into a care home and you were under 60 at that time, it is not impossible that if she was seeking LA (means tested) assistance, then while you could not be required to sell your home, the LA might choose to put a charge on the property so as to recoup from your mother's share when she died/the property was sold.

Were you over 60, then it seems that as rules currently stand, the property would not be taken into account for means testing purposes.

However this would not exempt your mother's other assets (pensions/savings etc) being taken into consideration.