Mother in law wants to put house in husbands name 16 May 2021 at 5:18PM edited 23 May 2021 at 7:00PM in Marriage, relationships & families 15 replies 1.8K views

DayDreamerandGeneralWaster

Just that really. Joint with a sibling and she will live in it until she dies.

She said it's to make it easier when she dies. No current health issues and she is in hr late 60s. However l am concerned about the implications of this as my husband hasn't given it a second thought. Any potential tax issues? What happens if one of them dies before her, she is incapacitated etc? What about liability for maintenance?

There is no mortgage. 

DayDreamerandGeneralWaster

!!!!!! name but bam3 bloody phone! 

MovingForwards

Do you / husband already own a home?
If so, read up on stamp duty. If not and you plan on buying somewhere, read up on stamp duty.

Tax issues is capital gains tax if the property is sold on her death.

If one does before her it forms part of their estate.

If one divorces or made bankrupt, it's part of their assets.

If she's incapacitated or goes into a care home, deprivation of assets comes in.

It doesn't make things easier when she passes away, it adds extra layers of complications while alive and when she dies.

DayDreamerandGeneralWaster

Yes this is what l was worried about. Yes we own a property in our names. 

MovingForwards

It's a bad idea and should remain her asset, look up everything I've listed. This question pops up all the time due to the mistaken belief it's easier, or protects the property for being used as care home fees, but without looking at the bigger impact of the action.

"If one does before her it forms part of their estate." Should have read "If one dies before her it forms part of their estate."

Keep_pedalling

Dumb idea, which won’t simplify things, and may lead to her losing the roof over her head. 

sevenhills

I believe that you can transfer ownership without a solicitor, but would you be happy to do that?

If not, then the solicitor could cost someone around £1,000

gizmo111

DayDreamerandGeneralWaster said:

Just that really. Joint with a sibling and she will live in it until she dies.

She said it's to make it easier when she dies. No current health issues and she is in hr late 60s. However l am concerned about the implications of this as my husband hasn't given it a second thought. Any potential tax issues? What happens if one of them dies before her, she is incapacitated etc? What about liability for maintenance?

There is no mortgage. 

Why does she think it would make it easier?

[Deleted User]

DayDreamerandGeneralWaster said:

Just that really. Joint with a sibling and she will live in it until she dies.

She said it's to make it easier when she dies. No current health issues and she is in hr late 60s. However l am concerned about the implications of this as my husband hasn't given it a second thought. Any potential tax issues? What happens if one of them dies before her, she is incapacitated etc? What about liability for maintenance?

There is no mortgage. 

These kind of threads crop up regularly on the forum. How does MIL think it will make things easier? Two issues I can see cropping up are deprivation of capital should she require care in the future and capital gains tax when she passes and the house is sold.  If MIL’s plan is to maximise tax due then this is the way to go about it. 

68ComebackSpecial

gizmo111 said:

DayDreamerandGeneralWaster said:

Just that really. Joint with a sibling and she will live in it until she dies.

She said it's to make it easier when she dies. No current health issues and she is in hr late 60s. However l am concerned about the implications of this as my husband hasn't given it a second thought. Any potential tax issues? What happens if one of them dies before her, she is incapacitated etc? What about liability for maintenance?

There is no mortgage. 

Why does she think it would make it easier?

My MIL suggested transferring her flat to us a few weeks ago as she genuinely thought that having the property already in our names would making the selling process easier either if she needed to enter a care home or upon her death. In her case the idea definitely wasn't to avoid care home fees or IHT.

p00hsticks

68ComebackSpecial said:

gizmo111 said:

DayDreamerandGeneralWaster said:

Just that really. Joint with a sibling and she will live in it until she dies.

She said it's to make it easier when she dies. No current health issues and she is in hr late 60s. However l am concerned about the implications of this as my husband hasn't given it a second thought. Any potential tax issues? What happens if one of them dies before her, she is incapacitated etc? What about liability for maintenance?

There is no mortgage. 

Why does she think it would make it easier?

My MIL suggested transferring her flat to us a few weeks ago as she genuinely thought that having the property already in our names would making the selling process easier either if she needed to enter a care home or upon her death. In her case the idea definitely wasn't to avoid care home fees or IHT.

If she wants to make things easier for you before her death, ask her to make sure she has put Power of Attorney (both health and financial) in place.

And to make things easier for you after her death, make sure she has made a will, made her funeral wishes known , and ensures that you (or whoever she puts as executor) are aware of all her savings accounts, pensions, utility companies etc.