Transferring home ownership

NoraPatterson82

wilfred30 said:

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.  

That’s true too - all an option! Technically we could just move in I guess and keep it simple!  

NoraPatterson82

greatcrested said:

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.

She has capacity yes thanks 🙂 she does find personal care and cooking hard and is very lonely. She’s moving into a home while she still has the potential to enjoy it - but she also has been diagnosed with dementia though it’s in her early stages. Lots of good advice to consider here though thanks 

caprikid1

I think the reality is you know that her current pension / savings will pay for her current care needs you anticipate long term this won't be the case. Still sounds like potential deprivation off assets. 
As is already stated just move in.

wilfred30

NoraPatterson82 said:

wilfred30 said:

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.  

That’s true too - all an option! Technically we could just move in I guess and keep it simple!  

Yes, I think the KISS rule should apply here 

NoraPatterson82

wilfred30 said:

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.  

And ah no other siblings to get the hump. One brother who does not want the house, as likes where he is living currently and owns his own home. He’s single and comfortable and has no one to pass it down to anyway. I believe he is expecting any other remaining inheritance that may befall one day and that’s fine with us maybe such things should be agreed more formally to avoid upset due to any unforeseen changes of heart down the line though good point!

wilfred30

NoraPatterson82 said:

wilfred30 said:

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.  

And ah no other siblings to get the hump. One brother who does not want the house, as likes where he is living currently and owns his own home. He’s single and comfortable and has no one to pass it down to anyway. I believe he is expecting any other remaining inheritance that may befall one day and that’s fine with us maybe such things should be agreed more formally to avoid upset due to any unforeseen changes of heart down the line though good point!

Huh?  That's a total contradiction.  

It would've been helpful if you'd mentioned your husband's brother earlier rather than drip feed information because someone had to ask the question.

getmore4less

NoraPatterson82 said:

wilfred30 said:

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.  

And ah no other siblings to get the hump. One brother who does not want the house, as likes where he is living currently and owns his own home. He’s single and comfortable and has no one to pass it down to anyway. I believe he is expecting any other remaining inheritance that may befall one day and that’s fine with us maybe such things should be agreed more formally to avoid upset due to any unforeseen changes of heart down the line though good point!

How much will be left after the care fees.
That could also be another 10 years while you enjoy your new home.


How big is this estate of the MIL if care is coming from income and saving that needs to be quite a bit to cover a good few years.

The 7 year thing is a red herring as gifts are generally tax neutral,  if the place is worth a lot and there is IHT some of the tax bill could come in your direction.

Getting the transfer done now may be better because there could be a  CGT bill if it needs to be sold before she dies.

greatcrested

getmore4less said:

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

One brother who does not want the house, as likes where he is living currently and owns his own home. He’s single and comfortable and has no one to pass it down to anyway. I believe he is expecting any other remaining inheritance that may befall one day

So potentially

* you get a property worth £500,000 (??), and all the benefits of immediate possession.

* MIL lives for 10 years, during which time her other assets, savings, investments (and perhaps even the yacht) get used financing her private care

* she dies, leaving an Estate that is now worth next to nothing

* your brother-in-law inherits.... next to nothing

Now maybe he won't care.Maybe he's happy where he currently lives, has no dependants, and is not interested in taking a mid-life round-the-world cruise. And maybe he will still be unconcerned about the apparant inequality of who inherotted what.

Or maybe his circumstances will have changed.

Or his attitude may be different.

This has the potential to lead to family 'humps'.

NoraPatterson82

wilfred30 said:

NoraPatterson82 said:

wilfred30 said:

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.  

And ah no other siblings to get the hump. One brother who does not want the house, as likes where he is living currently and owns his own home. He’s single and comfortable and has no one to pass it down to anyway. I believe he is expecting any other remaining inheritance that may befall one day and that’s fine with us maybe such things should be agreed more formally to avoid upset due to any unforeseen changes of heart down the line though good point!

Huh?  That's a total contradiction.  

It would've been helpful if you'd mentioned your husband's brother earlier rather than drip feed information because someone had to ask the question.

Very unhelpful comment! It didn’t seem relevant til someone asked the question!! I’m asking in a forum for some general info after an unexpected opportunity to live somewhere nicer has arisen, not a court of law! - the brother has stated he isn’t interested in the house, we see him daily and have a good relationship. If it felt relevant I’d have brought it up. When someone mentioned any siblings i accepted perhaps it could be good to arrange something more formal as have heard of people falling out over money. How is that a contradiction in terms!? And as for it just moving into her house I feels vulnerable and a little uncertain to do so - I’m here for advice as someone who knows nothing not to be judged thanks 

NoraPatterson82

getmore4less said:

NoraPatterson82 said:

wilfred30 said:

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.  

And ah no other siblings to get the hump. One brother who does not want the house, as likes where he is living currently and owns his own home. He’s single and comfortable and has no one to pass it down to anyway. I believe he is expecting any other remaining inheritance that may befall one day and that’s fine with us maybe such things should be agreed more formally to avoid upset due to any unforeseen changes of heart down the line though good point!

How much will be left after the care fees.
That could also be another 10 years while you enjoy your new home.


How big is this estate of the MIL if care is coming from income and saving that needs to be quite a bit to cover a good few years.

The 7 year thing is a red herring as gifts are generally tax neutral,  if the place is worth a lot and there is IHT some of the tax bill could come in your direction.

Getting the transfer done now may be better because there could be a  CGT bill if it needs to be sold before she dies.

Thanks! Her pension covers her bar £80 a week. She has over 85,000 saved to cover that £80 per week and is happy to use that. I would also be happy to sell our home and give her its value to also cover her should she live to 100 or something (she’s 80 now) but that would be buying her home at less than it’s worth - not sure if that’s legal? We could just put the funds from the sale of our house aside to be used for her care I guess 🤔 several ways to do it I guess 🙂