Mum wants to transfer house deeds to myself after dad has died.. best way to do it for her?

General_Grant

welshlad46 said:

Sorry ive been busy all day and only now got around to reading all this and i thank you all for replying, so the house is probably worth around £150,000 ish., is fully paid for. My mum has now just done her WILL.. she had left everything to me my wife and our little girl. She was told to leavr the house out of the WILL.. im unsure why. She is in very good health and dad passed away very sudden he had a heart attack while asleep at night. My mum and dad have always said that they “bought the house for me” over the years and when dad finished work a few years ago he payed the mortgage off. My mum gets half of dads works pension for the rest of her life now (around £600 a month). Me and my wife are home owners paying a mortgage currently if that helps for further advice. Ive been told by a few mates that the ownership change was the best option but after reading all these comments i am unsure now and il be honest it is a field i have very little knowledge on, and nor does my mum. She has literally within the month sorted the WILL and the power of attorney to me and my wife. 

Sorry for the lobg reply

So if your saying not to do the change of ownership what would be recommended for the safety for the house. As i have said, i have told her that it is her house and to be honest id rather her and dad lived to 100 and i didnt ever get the house but she is looking at reality here

cheers

Who told her that, I wonder.  Was the Will drafted by a solicitor or professional will writer?   [Perhaps if, after specific bequests which didn't include the house, there is a final clause leaving all other property to you this would have covered the house.]

getmore4less

Wkmg said:

Can I just ask, what is the time scale for this? How long before you need care is it reasonable to make large gifts to your children without it being deprivation of assets?

Gift of a house you plan to stay living in is always dubious unless you can justify another substantial reason.

Grumpy_chap

Wkmg said:

Can I just ask, what is the time scale for this? How long before you need care is it reasonable to make large gifts to your children without it being deprivation of assets?

This question may be answered at the following link (or may not be):
https://www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-care-home/deprivation-of-assets/

As might this:
https://www.which.co.uk/later-life-care/financing-care/gifting-assets-and-property/gifting-assets-what-are-the-rules-alp865l0wlum

welshlad46

I am unsure who told her but I think she wanted the house done outside of the WILL people ( as said i do apologise but we are both very un knowledgeable in these areas ). The WILL people did keep asking why she didnt want it in there but she just told them she was sorting it ( once again, she is grieving so please go easy on us I understand there are alot of people here that know what they are talking about but for us it is all new ). 

welshlad46

I have a friend who is a solicitor who said she could look into the deed swap as a gift

welshlad46

And what do you mean by does her assists have more for IHT? She has some money put by not a massive amount few thousand pound, 2 cars, and the contents of the house

Keep_pedalling

welshlad46 said:

I am unsure who told her but I think she wanted the house done outside of the WILL people ( as said i do apologise but we are both very un knowledgeable in these areas ). The WILL people did keep asking why she didnt want it in there but she just told them she was sorting it ( once again, she is grieving so please go easy on us I understand there are alot of people here that know what they are talking about but for us it is all new ). 

There is a very good reason you don’t include a specific property in a will, and that is by the time you die you may not own the same property or may not own any property at all, which could accidentally disinherit one of your beneficiaries.

Giving your own home away is nearly always a very bad idea. It does not save IHT, it does not avoid self funding if care is required, and it can lead to unnecessary capital gains when you die. It also takes your long term security out of your hands. What happens if you predecease her, get divorced or get made bankrupt? People have lost gifted homes for all those reasons, and some have even been thrown out by they own children.

If you really care for her you will refuse her offer and tell her that if it came to it you would prefer that she use the house to provide high quality care and that you would rather lose your inheritance than have her end up in over my dead body grange that lack of choice may lead her too.

welshlad46

So what would you recommend be done… or what is the best solution. As i have said i hope no one thinks this is on me as i really dont want it, as far as im concerned it is her house and she can do as she pleases with it. She just wants it protected as she said she has worked all her life to have that house 

elsien

Just to be clear, what exactly does she want the house to be protected from? 

It needing to cover any care costs (bearing in mind most people don’t end up in care) or any potential taxes after she dies? 

Keep_pedalling

welshlad46 said:

So what would you recommend be done… or what is the best solution. As i have said i hope no one thinks this is on me as i really dont want it, as far as im concerned it is her house and she can do as she pleases with it. She just wants it protected as she said she has worked all her life to have that house 

It is difficult when someone has this attitude. If it IHT she is worried about, you can assure her that her estate is well below that so that it is not an issue. If her concerns are have to pay for care all you can do is inform her that giving the house away will not work, and could give you a big tax bill when she dies or wants to have it sold for something smaller. Also assure her that you want the best for her in her later years so do not want her to make the gift.