Deed of Gift - Gifting a home

PML19

My family are looking to gift their property to me and to continue to stay in the home.

The house is probably no more that 220k and as I mentioned, they would still live there. It's mortgage free and they believe it's still registered with land registry.

Just looking or a little bit of advice on the best steps to take? i.e:
- What forms are there to complete?
- Is legal advice needed or if can be done via HMRC and Land Registry directly?
- Are there are any implications on them for home insurance/contents?
- I read that they would have to prove that they are paying market value? As it's paid off, is this still the case? Or is it just that they are paying bills?

All the silly questions i'm sure.

If anyone can help in any way, I'd be really grateful!

xylophone

My family are looking to gift their property to me and to continue to stay in the home.

Why do they want to make the gift if they wish to continue to occupy the property?

Do you also live in the property?

Mojisola

PML19 wrote: »

My family are looking to gift their property to me and to continue to stay in the home.

They want you to have to pay Capital Gains Tax when the house is sold?

elsien

Also the implications of:
You being their landlord and the obligations that entails.
You going bankrupt and needing to sell up
You getting divorced and needing to sell up
You losing your job and the impact of a second property on any benefits claims.
If you are currently living there, the impact on your FTB status.

Etc.

Sea_Shell

As above, my first question would be why?

What are they trying to achieve (or avoid)?

Keep_pedalling

Mojisola wrote: »

They want you to have to pay Capital Gains Tax when the house is sold?

:rotfl: ..............

Keep_pedalling

If this is a ruse to avoid care fees, it won’t work as it is clearly deliberate deprivation of assets.

If this an attempt to reduce potential IHT they also need to pay you full market rent to avoid being a gift with reservation.

I can’t see the second being the reason, as it is only a £200k house so they are unlikely to have anywhere near enough assets for IHT to be an issue.

Whatever the reason it is a very stupid idea and should be dropped.

AhmedY123

Hi there,

Just so you are aware if they continue to live in the house. HMRC would charge you as they believe that while you have given something away, you are still receiving the benefit i.e. you are still living there rent-free so they would tax you on that benefit.