Gifting to my son

HousingA

I trust my son

robber2

But will you trust any partner he may have in the future?

HousingA

Yes

I just need to understand the tax implications of there are any

getmore4less

There is no tax on gifts. 

He is effectively buying the place as There will be consideration for a SDLT assessment. 

How much is the house worth.
As you will still be living there it will still form part of your estate


You lose control of the place you live.

Why does it need to be all the house why not just 1/2.

If he can't get a mortgage this could end up a trap. 

CSL0183

I don’t think it’s anyone’s business on why a mother is gifting her house to her child. We all die and inherently do the same, in this case it’s just pre death rather than post death. This lady may have terminal cancer or there may be other unknowns that none of us are aware of, frankly it’s none of our business. What’s the risk here? That the son kicks his Mum out and then what, sees her sleeping on the streets in a shop doorway? For the majority of normal human beings with an ounce of compassion that would never happen. I’d like to think 90%+ of us are wired up that way anyway? If she trusts her son fully then that’s good enough surely?

p00hsticks

CSL0183 said:

I don’t think it’s anyone’s business on why a mother is gifting her house to her child. We all die and inherently do the same, in this case it’s just pre death rather than post death. This lady may have terminal cancer or there may be other unknowns that none of us are aware of, frankly it’s none of our business. What’s the risk here? That the son kicks his Mum out and then what, sees her sleeping on the streets in a shop doorway? For the majority of normal human beings with an ounce of compassion that would never happen. I’d like to think 90%+ of us are wired up that way anyway? If she trusts her son fully then that’s good enough surely?

The issue is that questions of this type ('I want to sign over my house to X and Y') appear quite a lot on one or other of these boards, often with little background as to exactly why the OP wishes to do it and the precise circumstances of the donor and donee.

Such a move is often not a good idea for a number of reasons, depending on the exact circumstances - for example, it potentially doesn't remove the property from the donors estate for IHT purposes, it triggers a CGT transaction, it leaves the donor open to claims of deprivation of benefits, it removes the donors security, means the donee pays additional SDLT on other purchases, the donee loses first time buyer incentives etc....

So when faced with a question of this type, regulars often want to dig a bit deeper to establish the thinking behind the queston....

Keep_pedalling

HousingA said:

The reason why I am gifting him the property is so he can get a new mortgage against the house

In other threads you talk about spending money on BTL properties, so if you want to help him why gift your home when you have other assets you could help them buy their own place?

Keep_pedalling

CSL0183 said:

I don’t think it’s anyone’s business on why a mother is gifting her house to her child. We all die and inherently do the same, in this case it’s just pre death rather than post death. This lady may have terminal cancer or there may be other unknowns that none of us are aware of, frankly it’s none of our business. What’s the risk here? That the son kicks his Mum out and then what, sees her sleeping on the streets in a shop doorway? For the majority of normal human beings with an ounce of compassion that would never happen. I’d like to think 90%+ of us are wired up that way anyway? If she trusts her son fully then that’s good enough surely?

When someone posts on a public forum that they are are going to something really stupid, do you not think it wise to point out the error of their ways?

getmore4less

Keep_pedalling said:

HousingA said:

The reason why I am gifting him the property is so he can get a new mortgage against the house

In other threads you talk about spending money on BTL properties, so if you want to help him why gift your home when you have other assets you could help them buy their own place?

I misread, so the plan was to get a new mortgage in his name.

That increases the risk of losing the place. 

Keep_pedalling

HousingA said:

I trust my son

Do you trust him not to run into financial difficulty, or not to become ill, have an accident or die before you? All of these things are threats to your security.

What happens if (as is likely) they want or need to move to a new home?