Signing over a property

Paul_Kara

Hi all,
My mum would like to sign over her property to my brother and I she is of sound mind and wants the best way to protect all our financial interests.
There is no mortgage on the property my brother currency lives there with no other property of his own. I have my own property mum has a will in place stating equal share of the property any help and guidance would be greatly appreciated.
Ta 

Pixie5740

Paul_Kara said:

Hi all,
My mum would like to sign over her property to my brother and I she is of sound mind and wants the best way to protect all our financial interests.
There is no mortgage on the property my brother currency lives there with no other property of his own. I have my own property mum has a will in place stating equal share of the property any help and guidance would be greatly appreciated.
Ta 

Not this old chestnut.  Whatever your mother is attempting to do is almost certain to fail in protecting any of your financial interests.  

MaryNB

Could be considered depravation of assets.

Will she continue to remain in the property? If so it is a gift with reservation of benefit. In that case it the 7 year rule does not apply because the gift is not given in full. For IHT the value will be considered when she dies or moved out, not when the title is transferred to you. 

FaceHead

Some advice: Get professional advice. Some things you can get done or leant with a few tips from strangers on a forum, but this is a minefield.

Whilst there isn't much detail in your post, it sounds rather like you're hoping to avoid IHT and/or get help with future care. If your mum continues to live there the house will still be hit with IHT, and you'll probably end up paying CGT on it from the value of it when it was signed over to you!

Paul_Kara

All sorted and pretty straight forward, 2/3 signed over to me and my brother thanks for some of the helpful replies 👍

Brie

Paul_Kara said:

All sorted and pretty straight forward, 2/3 signed over to me and my brother thanks for some of the helpful replies 👍

I'm interested to know how this was arranged and what a solicitor might have advised.  

babyblade41

wow that was quick.. I hope your legal advice was good ..would love to know the figure when the time comes for CGT & IHT plus possible deprivation of assets 

maisie_cat

Remember that your mother now has to pay a market rent to you for your share and you need to declare it as income. Alternatively she can pay the pre owned asset charge and make a return to you HMRC herself.

Loza2016

My mums and dads solicitor talked my mum into removing my Dads name from their house while he was in a nursing home with Dementia. The solicitor didn’t even consider deprivation of assets or the fact that when acting POA for my Dad it had to be in his best interest. Don’t trust solicitors as far as I can throw them. 

Keep_pedalling

maisie_cat said:

Remember that your mother now has to pay a market rent to you for your share and you need to declare it as income. Alternatively she can pay the pre owned asset charge and make a return to you HMRC herself.

That would only be required if you need to take the gift out of your estate for IHT purposes, it is not compulsory.

There will almost certainly be. CGT issue for the OP when the house is eventually sold in the future, one of the reasons these dodging care fee schemes are not to be recommended. Let’s hope for the mother’s sake the OP never goes bankrupt or gets divorced.

TBG01

Loza2016 said:

My mums and dads solicitor talked my mum into removing my Dads name from their house while he was in a nursing home with Dementia. The solicitor didn’t even consider deprivation of assets or the fact that when acting POA for my Dad it had to be in his best interest. Don’t trust solicitors as far as I can throw them. 

I'm assuming you lodged a formal complaint then.