heres a tricky one .....transferring house to son......any ideas appreciated.....

gramy1

 parents are 89 and 91.....the house is joint owned by them.....value 650,000........there is 155,000 equity loan on house......we wish to transfer house to sons name......obviously we will have to pay off the equity loan first........what is the best way to do this transfer..??.....will my son then be able to take equity loan in his name on the house...???......what are the cost involved to do this (taxes etc)....do not know a good way to even start..........after we pay off the equity loan then how do we proceed ??....or are there better ways to do this......thanks for any reply's.......

mark55man

can you be a bit clearer - is it your parents and your son (ie 90 years olds are the grandparents).  Also why are you doing it, its generally fraught with risk, or a sign that you are trying to avoid care fees, which wont work (see deprivation of assets).  Also where would they live after the transfer - if its a gift with reservation its not seen as a gift so you lose IHT benefits.

Others are more skilled in this, but there are often threads like this, and the advice is that far more often than not its a bad idea

gramy1

parents will continue living in house.....son  is  64 years old living at house and looking after them .......is there any way to do this...thanks

Slithery

Why do they want to do this?

gramy1

trying to sort out all finances etc now so son can leave country as soon as they pass.....he lived mostly in mexico...........father has cancer.....mother very old.......trying to simplify everything.....

[Deleted User]

gramy1 said:

 parents are 89 and 91.....the house is joint owned by them.....value 650,000........there is 155,000 equity loan on house......we wish to transfer house to sons name......obviously we will have to pay off the equity loan first........what is the best way to do this transfer..??.....will my son then be able to take equity loan in his name on the house...???......what are the cost involved to do this (taxes etc)....do not know a good way to even start..........after we pay off the equity loan then how do we proceed ??....or are there better ways to do this......thanks for any reply's.......

Whilst there is an outstanding mortgage secured against the property the parents won’t be able to transfer ownership to anyone. Unless the son can raise £155k or the parents have savings of £155k stashed away somewhere so that the mortgage can be paid off first the transfer is a non-starter. 

I’m not sure the transfer would simplify things anymore than well written wills by both parents anyway. 

getmore4less

What do you think this simplifies?
What if done dies before both parents?

justwhat

You need to explain the point or intended point of doing this.
There are possible inheritance tax / cost  issues with what you are wanting to do.

gramy1

we can raise the money to pay off loan.......so are you saying there is no point in doing this  transfer to sons name and there are no benefits....thanks

AdrianC

It eases nothing.
The son will want to sell the house when they die either way - either as executor, or as owner. Probate will be straightforward, if they get all their ducks in a row now.
There are no IHT liability issues - £500k total assets between two, £650k joint threshold.
If they don't have a will in place, they can do so quickly to skip that generation and leave it all to their grandson.

Gifting now will increase the risk of complication.

But if your parents are 89 and 91, and your son is 64, am I missing a generation, or are there lots of REALLY early-starters in your family?

sammyjammy

AdrianC said:

It eases nothing.
The son will want to sell the house when they die either way - either as executor, or as owner. Probate will be straightforward, if they get all their ducks in a row now.
There are no IHT liability issues - £500k total assets between two, £650k joint threshold.
If they don't have a will in place, they can do so quickly to skip that generation and leave it all to their grandson.

Gifting now will increase the risk of complication.

But if your parents are 89 and 91, and your son is 64, am I missing a generation, or are there lots of REALLY early-starters in your family?

I think its just the weird way the post is written, there is no grandson, just a couple (one of whom is posting) and a son.  Thats how I read it anyway!