Giving house to daughter

Mickey666

According to this advice, there is no POAT if 

• you gave away your home to your children, say, but now have to live with them because of old age or illness

https://taxguide.co.uk/about-poat-pre-owned-assets-tax-25240/

Keep_pedalling

grannyjo said:

The daughter and son in law want to own a property. Not a promise in a will that could be changed, we won’t to be relieved of repairs etc

You said you had not long to live, so what are the chances you will change your will? At least with a will you do have the option to change your mind, giving stuff away is irreversible. 

Your daughter has just sold there house, which suggests they are sitting on a significant amount of cash, why not use it to purchase a share in your home if they are so kenn to be owners? 

xylophone

• you gave away your home to your children, say, but now have to live with them because of old age or illness

But this is not what has happened.  The OP and spouse own this property, have built an extension and invited their daughter to live in the main body of the property while they live in the extension.

we have built an extension and my daughter and son in law plus 3 children have moved into our house with husband and I in extension. They have just sold their house and we are giving our house to them. 

Mojisola

Aranyani said:

What if they split up?  What if they lose their jobs?  What if one becomes ill or disabled?  What if they need to move for work?

I had an elderly relative who combined his assets with son and daughter-in-law to buy a bigger house and all moved in together.

Son died young, leaving elderly relative living with daughter-in-law and her new partner.  His last few years weren't happy ones.

When planning these kind of arrangements, you do have to consider a range of what-ifs.

RAS

As said, if daughter's marriage breaks down, SIL takes half the assets and everyone is likely to be struggling to find anywhere to live.

If daughter dies first, any surviving parent will be dependent on the good will of SIL. There was an interesting thread on this recently. Thankfully her bereaved partner was trying to do the right thing but the situation is a hell of a mess.

getmore4less

grannyjo said:

The daughter and son in law want to own a property. Not a promise in a will that could be changed, we won’t to be relieved of repairs etc

If you retain a life interest they won't own it they will be trustees of a trust. 

naedanger

Why does your daughter want to deprive you of having the option of changing your will? What is the scenario she is concerned about? And why are you content to accept that in that scenario your wishes should be ignored?

Mickey666

xylophone said:

• you gave away your home to your children, say, but now have to live with them because of old age or illness

But this is not what has happened.  The OP and spouse own this property, have built an extension and invited their daughter to live in the main body of the property while they live in the extension.

we have built an extension and my daughter and son in law plus 3 children have moved into our house with husband and I in extension. They have just sold their house and we are giving our house to them. 

It’s not what has happened yet, but that seems to be the OP’s plan, ie to ‘give away their home to children’ but to then continue to live their because of ‘old age or illness’.  At least, that’s what I would argue so as not to declare a POAT liability on my tax returns.  Anyway, there are other ways to defeat the POAT liability so I’d say that’s the least of the OP’s worries right now.

As for the ‘extension’ it’s not clear if this is just a couple of extra rooms or a completely self-contained living space including kitchen and bathroom.  Might make a difference?

Savvy_Sue

Mickey666 said:

As for the ‘extension’ it’s not clear if this is just a couple of extra rooms or a completely self-contained living space including kitchen and bathroom.  Might make a difference?

Definitely need to check the situation for Council Tax if it is completely self-contained: there can be restrictions over it not being occupied by anyone other than family (which can affect future plans / saleability) and whether it is liable for CT in its own right. 

Definitely a situation to get 'proper', ie paid for, professional advice from a STEP solicitor, and DD and SIL should do the same, independently. 

Mickey666

 . . . And if it is liable for CT in its own right, there are discounts up to 100% if occupied by ‘dependent relatives’, one definition of which is anyone over 65.  So, any such liability would likely reduce the total amount of CT to be paid on the property (assuming the rest of the property is down-banded when the revised assessment is made).