Tranfer of 50% equity of home to my son

user1977

bexybest said:

Mani0208888 said:

He already owns his housewould he still need to pay 3% SDLT?

Yes 3% additional SDLT would be due.

...on any consideration he's actually paying for this 50% share. If it's a gift then no SDLT (but the property ownership may then affect SDLT for future transactions).

Mani0208888

Hi I have some feed back, I have spoken to a solicitor and I have been given to options

OPTION 1

The quote includes the 50/50 Lifetime Interest Trust, includes a single or mirror will:

Cost £650

OPTION 2

If you are looking to remove or add someone off the deeds of the property then you would need Transfer of Deeds:

Cost £640

Which option should I go for as I don`t want my other kids to contest my will when I`m gone.

jonnydeppiwish!

You’re opening a massive can of worms in doing this. Please get professional advice before you do anything as you could potentially lose your house in varying situations.

Don’t rely on advice here as we are not in all the details.

Deprivation of assets is a big thing with councils at the present, let alone the family breakup that will potentially ensue.

Think very carefully before doing anything.

jonnydeppiwish!

Also, are you expecting to die soon? Do you have a legal partner who may have a claim on the property? Inheritance tax potential?

Mani0208888

No legal partner i`m ok health wise, thanks I just want my son to have my home when I`m gone that`s all I thought if I giving him 50% while I`m alive. And leave him 50% in my will no one will be able to contest my will also I have no partner.

canaldumidi

Mani0208888 said:

No legal partner i`m ok health wise, thanks I just want my son to have my home when I`m gone that`s all I thought if I giving him 50% while I`m alive. And leave him 50% in my will no one will be able to contest my will also I have no partner.

No one has mentioned Capital Gains Tax should your son own 50% and the property be sold.

There are so many implications to this plan which is why people have been asking...

Finally,you say "just want my son to have my home when I`m gone". So leave the property to himin your will. Sorted!

Why would/could anyone 'contest your will'?Just make sure you get a proper will written and forget this stupid idea.

Or better still, leave your 'assets' to him (or 'the remainder' after anyother bquests) since who knows whether by the time you die you may have moved, sold whatever in which case you son will get nothing.

But there is no logical reason yet given for this 50% transfer, and plenty of potential pitfalls in doing this.

Having said this,if you DO decide to go ahead with this rash act, no solicitor needed. Just compete and submit the Land Registry forms TR1, AP1, and ID1.

ps- you can get a will drawn up free during 'free will week',or via several well-known charities.

Note: final thought: the only reason your will might be contested might be if you are not 'of sound mind'. If that is a remote possibility, then even more reason not to give away half your property.........

Keep_pedalling

Making gifts to children is fine if you have significant liquid assets to do so, but gifting a portion of your house makes no sense unless they live with you. As well as the CGT already mentioned this would be classed as a gift with resignation of benefit so the gift will never pass out of your estate under the the 7 year rule.

Who are you concerned about with regard to challenging your will?

canaldumidi

Keep_pedalling said:

Making gifts to children is fine if you have significant liquid assets to do so, but gifting a portion of your house makes no sense unless they live with you. As well as the CGT already mentioned this would be classed as a gift with resignation reservation of benefit so the gift will never pass out of your estate under the the 7 year rule.

Just to be clear!

Mani0208888

My younger daughter I think will make a claim because she has not lived with me for the last 10 years but yet she refuses to move her bank statements. And electro roll, driving license, even her cars are registered to my address. So this is why I want my son to have 50% share now.

 

I have asked her many times to change all her stuff to her house but she will not. So I have had enough of this and I’m of complete sound mind regarding my will.

canaldumidi

Mani0208888 said:

My younger daughter I think will make a claim because she has not lived with me for the last 10 years but yet she refuses to move her bank statements. And electro roll, driving license, even her cars are registered to my address. So this is why I want my son to have 50% share now.

 

I have asked her many times to change all her stuff to her house but she will not. So I have had enough of this and I’m of complete sound mind regarding my will.

This has nothing to do with your will. Nothing you've said suggests she would have grounds to contest it.

You should forget the idea of transferring 50% to your son now - just see a solicitor and write a will leaving your Estate (not the named property that you might sell before you die) to your son.

Sorted.!

And if you don't like your daughter using your address, well, you can't actually stop her, but whenever you receive any mail for her, simply write "Not known at this address - Return to Sender 'on the envelope and put it back in a big red box!