Transferring home ownership

NoraPatterson82

Hi. My mother in law is self funding moving into a care home with her extensive pensions and savings. As such she wants to give us her house (as it’s bigger and nicer than ours!) and she doesn’t need it to pay for her care, and put it in our name. There’s no mortgage or outstanding payments on the property. We own our own home and would either sell it or rent it. What’s the legal framework for it all? Do we need a solicitor? Can it just go into our name or do we have to buy it from her? I always presumed when she went into a care home she’d need to sell the house to pay for it so am a bit blindsided by this turn if fortunate events! Thanks!

getmore4less

Simple gift will work.

Potential for deprivation of assets if her money runs out and needs benefits top up, plan to fund that at the time

if her estate is substantial probably worth checking the IHT implications especially if estate needs the RNRB

any other siblings that may get the hump if OH gets the house and they get nothing

davidmcn

NoraPatterson82 said:

We own our own home and would either sell it or rent it. 

If it's going to be sold, why doesn't she just sell it herself? Transferring it via you seems an unnecessary (and expensive) complication.

getmore4less

I got they intend to move into MIL house and sell or rent out their current one.

Mickey666

I read that as the OP will sell their current home, not the one being gifted that the OP will move into because it is ‘bigger and nicer’.

But if I’m wrong then I agree there’s no point in transferring.

greatcrested

Does 2nd property SDLT apply if the property is gifted with no consideration?

But to answer your question, assuming you know the property/area and are happy to forego searches, survey etc, you do not need a solicitor and can simply transfer ownership via the relevant forms to the Land Registry:

TR1, AP1, ID1

https://www.gov.uk/government/publications/registered-titles-whole-transfer-tr1

NoraPatterson82

Mickey666 said:

I read that as the OP will sell their current home, not the one being gifted that the OP will move into because it is ‘bigger and nicer’.

But if I’m wrong then I agree there’s no point in transferring.

Yeah that’s right. We have scrimped to manage to own our ex council house - hers is a 4 bedroom house in a lovely neighbourhood- I’m still a bit stunned as was expecting to be selling if for her not moving into it!

AskAsk

as someone else has already said, deprivation of assets may come into play.  you will definitely need a solictor, especially as she is going into a care home, getting it done through the solicitor will kill the capacity worry i think, that she has capacity to make this decision as it is a big decision and you could be accused of coercing her to pass the assets over to you where she has no capacity to make such a decision.

due to her age, there may also be inheritance tax if she dies within the 7 years tax rule. 

NoraPatterson82

davidmcn said:

NoraPatterson82 said:

We own our own home and would either sell it or rent it. 

If it's going to be sold, why doesn't she just sell it herself? Transferring it via you seems an unnecessary (and expensive) complication.

Thanks yeah her house isn’t being sold. I had expected she’d need to but has more money that I had conceived of. So she’s happy for us to have her house as she can afford to pay for her care without selling it. We’re moving into it not selling it and I was wondering the legal framework around how that even works

wilfred30

getmore4less said:

Simple gift will work.

Potential for deprivation of assets if her money runs out and needs benefits top up, plan to fund that at the time

if her estate is substantial probably worth checking the IHT implications especially if estate needs the RNRB

any other siblings that may get the hump if OH gets the house and they get nothing

You haven't answered this question, which is quite important.

If the answer to that is no, why does she need to transfer it to you and your husband at all?  Why can't you just move into her house now and either sell or rent yours.  Afterall, he will inherit it anyway so I don't see the point in all the faff of transferring it now.  

greatcrested

AskAsk said:

....  you will definitely need a solictor, especially as she is going into a care home, getting it done through the solicitor will kill the capacity worry i think, that she has capacity to make this decision as it is a big decision and you could be accused of coercing her to pass the assets over to you where she has no capacity to make such a decision.

A lot depends who is doing the Transfer.

If Nora has POA and is transferring the property into her own name using the POA, then yes potential for an accusation of misuse of power.

If the MIL has mental capacity and will be doing the transfer, signing the forms, then I don't see a problem.