Mother in law wants to put house in husbands name

68ComebackSpecial

p00hsticks said:

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.

Yes, every one of those items has already been put in place and we know where her will, address book and the binder containing all her paperwork are kept - she is Teutonically organised.

RAS

Add to the list of problems your MIL will cause if she transfers the house to her children:

If either of them get divorced, half the value of the "her" house would be used to calculate her child's share of the assets. So she might well end up having to house them as the marital home would likely go to their ex-spouse.

And of course if she needs to downsize, CGT and the 2nd home stamp duty would reduce the amount available to buy a replacement.

Basically, not a good idea and if life throws up any problems, a potential disaster.

.

getmore4less

To simplify the best option is to have multiple LEGAL owners as that removes the need for a probate when any one of the dies.

Most of the downsides have been mentioned 

The best time to do anything would be been when there is a deceased spouse with  the use of IPDI trust. 
Then  the trustees can be the  extra legal owners along with part of the property ringfenced against any asset grabs like care.



   

TBagpuss

As others have said, it won't make things easier and does have significant risks for her, and potential financial disadvantages for your husband and his sibling. 

As she has got things like PoA in place she is already pretty well prepared - if she wanted, she could open a joint account with your husband and have some funds in that to cover any immediate expenses likely to arise if she dies, but she'd need to be aware that it could have disadvantages such as linking them financially, and putting that money at risk either if your husband decide to spend it, or if you and he split up, for instance! 

DayDreamerandGeneralWaster

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?

In all honesty, l don't know. It was a conversation l wasn't party to as it was over the phone. I somewhat think it's none of my business, but if it comes back and bites them in the bum no doubt l will have to clear the mess up.