Inheriting my parents’ house

bjb0573

My parents are in their 70s and own their own home outright. I am their only son and will be the sole beneficiary of their property and savings. They both have wills which indicate all of this this.

I’m trying to understand if there is any benefit / advantage in signing over the ownership of their home to me in advance of the natural inheritance, so as to avoid complications later?

Many thanks,
B.

davidmcn

No, and plenty of disadvantages. Apart from anything else, bear in mind the likelihood of them having moved out of the house (to downsize or go to a nursing home) by the time the survivor dies - not as many estates end up including the "family home" as people think, because it's already been sold.

frogglet

It could have more problems than just leavng it till you inherit whatever they finally leave behind.

Mickey666

What ‘complications later’ does the OP envisage?  As the sole beneficiary it should be a very simple ‘assent’ process to change ownership when the time comes.  Just a bit of form filling really.

elsien

The OP possibly envisages the “inheritance” which doesn’t exist until both parents pass on, being used for their care. If needed. Which may or may not happen. But could cause far more complications than it avoids if things aren’t left as they are now. 

Stubod

..seems like the simplest of wills to me, so what complications do you envisage?

theartfullodger

bjb0573 said:

My parents are in their 70s and own their own home outright. I am their only son and will be the sole beneficiary of their property and savings. They both have wills which indicate all of this this.

.....

I admire your optimism; Clearly they are jointedly or individually at liberty to change their wills, indeed people have been known to re-marry and leave everything to new spouse.  (Remarked as a fact rather than any prediction or forecast)

Don't count chickens until they're hatched..

Artful: 72. Now on his 3rd successful marriage

I've told my 3 sons that they'll inherit nothing as I'm intent on drinking all the assets:  Very serious point, I (& thankfully could) was very keen when bringing up kids that they become independent & self-sufficient:  Seen too many people become lazy and not bother assuming they'll be looked after - but I'm sure that's not the case with bjb..

Best wishes to all.

AdrianC

It isn't an inheritance until they're dead. It's a gift.

There are a lot of complications surrounding large gifts from elderly people... Why? Because there's really only one main reason to do so - and that's to try to cheat the tax man out of IHT or the council tax payers of their home area into subsidising care...

FreeBear

Mickey666 said: What ‘complications later’ does the OP envisage?  As the sole beneficiary it should be a very simple ‘assent’ process to change ownership when the time comes.  Just a bit of form filling really.

The only real complication might be if the property is not registered with the Land Registry. If it isn't I would strongly recommend the OP gets his parents to do a voluntary first registration NOW. Having the registration in place will make transfer after death a much simpler task (or if the property needs to be sold to pay for care).

Mickey666

FreeBear said:

Mickey666 said: What ‘complications later’ does the OP envisage?  As the sole beneficiary it should be a very simple ‘assent’ process to change ownership when the time comes.  Just a bit of form filling really.

The only real complication might be if the property is not registered with the Land Registry. If it isn't I would strongly recommend the OP gets his parents to do a voluntary first registration NOW. Having the registration in place will make transfer after death a much simpler task (or if the property needs to be sold to pay for care).

Good point, especially if there’s no mortgage and deeds have been mislaid.

bjb0573

Thanks all for the helpful replies.
I did a little research some months and back there seemed to be a figure of "7 years" mentioned with respect to sums that were "gifted" - and whether or not the recipient(s) of those gifts would be considered still possessive of the asset and responsible for further "costs" at a later date. Does anyone know if this is a hard and fast rule?
Regarding the house deeds, i'm pretty certain that my dad has them, but I will check when I speak to him.