IHT Advice

Chatty_lady2020

A family member wants to help her child to get on the property ladder. They have discussed different ways of possibly doing this. 

1. Gifting a lump sum around the region 50-100k.

2. Singing over part of the family home and the child taking out a mortgage for the rest. 

3. Putting the family home in her child’s name. 

Can these actually be done with out any implications? Just gathering info before getting solicitors involved. 

Thank you 

Savvy_Sue

1 is relatively straightforward as long as there's no foreseeable need for help with care for the donor.

2 and 3 are fraught with problems. Just don't...

Pollycat

Savvy_Sue said:

1 is relatively straightforward as long as there's no foreseeable need for help with care for the donor.

2 and 3 are fraught with problems. Just don't...

Especially 3

justworriedabit

Hi OP
I need more info before I can give a clear answer, IE your age/health/income etc, etc
One thing I can tell you that has not been touched on is if you gave away the cash and then expected to go on benefits soon after, rightly so they will refuse.
I hope it works out for you.but from the bit of info you have given, seek professional guidance.

Keep_pedalling

Yup 2 & 3 would be utterly idiotic.

You mention IHT in the title, if their joint estates are actually in IHT territory then 1 is a good idea. If not and it means giving away all their liquid assets it also may be a bad idea.

Chatty_lady2020

Thank you for all your comments. Also the owner does not live in the house they own. 

getmore4less

If they gift  or sell the house they have not been living in  then that will trigger CGT assessment.

Does that child want that house?

Gifts tend to be IHT neutral(they do not cause extra tax) and if proper gifts they drop out of the estate after 7 years(some sooner from other exemptions.

Keep_pedalling

Chatty_lady2020 said:

Thank you for all your comments. Also the owner does not live in the house they own. 

You really need to provide a lot more detail rather than drip feed info. Have they ever lived in the house during their ownership? If they inherited the family home how long ago did the previous owner die?