Can a parent gift a child their home ?

Maxine1978

Hi 

My mum owns her own home and was leaving it to myself and my 2 siblings in her will, however circumstances have changed and she is getting a council bungalow as mobility is an issue. Could my mum fulfil her wishes and gift us children her home or wouldn't this be allowed ?? 

Caz3121

best to look into deprivation of assets. From a benefits point of view she will likely be treated as if she has the value of the property in cash (notional capital) so will mean any means tested benefits will likely not be payable. In addition if she needs residential care in the future the value of the property will come into the equation. Probably fine if she has enough capital to support herself and not require any financial assistance from elsewhere but would suggest getting legal advice as giving away a large asset can cause issues

Newcad

You would need to say more about the bungalow and on how she has got it if she has her own property.

Eg. is it a managed scheme, is daily care included, etc. etc.

How is she going to pay the rent on the bungalow? Benefits won't pay it if she has a property or gifts a property away.

There are also tax implications of gifting a property. https://www.pettyson.co.uk/about-us/our-blog/530-gifting-property-transfer-home-ownership-deed-of-gift

kaMelo

Your mother can give anything she wants to anyone she wants, there is nothing stopping her doing that.

There may however be consequences of doing so in relation to means tested benefits, future care needs, inheritance tax to name a few. 

It may also impact you and your siblings if any of you are currently first time buyers or claiming means tested benefits

What any impact may be will depend upon the specific circumstances of each person.

sevenhills

kaMelo said:

Your mother can give anything she wants to anyone she wants, there is nothing stopping her doing that.

There may however be consequences of doing so in relation to means tested benefits, future care needs, inheritance tax to name a few. 

It may also impact you and your siblings if any of you are currently first time buyers or claiming means tested benefits

What any impact may be will depend upon the specific circumstances of each person.

My dad gave the proceeds of his house to his three children, that was twenty years ago, things were more relaxed then.
He didn't need care and all was ok.

Grumpy_chap

Caz3121 said:

best to look into deprivation of assets. From a benefits point of view she will likely be treated as if she has the value of the property in cash (notional capital) so will mean any means tested benefits will likely not be payable. In addition if she needs residential care in the future the value of the property will come into the equation. Probably fine if she has enough capital to support herself and not require any financial assistance from elsewhere but would suggest getting legal advice as giving away a large asset can cause issues

Something seems incomplete or inconsistent in the above.

Normally it is not possible to have the use of a "council house" if you own a property.  Is the phrase "council house" being used in a different context to that which I imagine?

Pollycat

Grumpy_chap said:

Caz3121 said:

best to look into deprivation of assets. From a benefits point of view she will likely be treated as if she has the value of the property in cash (notional capital) so will mean any means tested benefits will likely not be payable. In addition if she needs residential care in the future the value of the property will come into the equation. Probably fine if she has enough capital to support herself and not require any financial assistance from elsewhere but would suggest getting legal advice as giving away a large asset can cause issues

Something seems incomplete or inconsistent in the above.

Normally it is not possible to have the use of a "council house" if you own a property.  Is the phrase "council house" being used in a different context to that which I imagine?

Given the OP says this:

Maxine1978 said:

Hi 

My mum owns her own home and was leaving it to myself and my 2 siblings in her will, however circumstances have changed and she is getting a council bungalow as mobility is an issue. Could my mum fulfil her wishes and gift us children her home or wouldn't this be allowed ?? 

I think it may be specific elderly/immobility property.

My Dad had mobility issues and he and Mum were offered a ground floor flat in a council owned warden-controlled senior citizens' block.
They owned their own house and when they moved in to the flat they put it up for sale.
IIRC (it was almost 20 years ago) they received council rent relief until the house was sold when they started paying full rent.

Mum later moved to a council owned bungalow that was specifically for the elderly.

Spendless

Grumpy_chap said:

Caz3121 said:

best to look into deprivation of assets. From a benefits point of view she will likely be treated as if she has the value of the property in cash (notional capital) so will mean any means tested benefits will likely not be payable. In addition if she needs residential care in the future the value of the property will come into the equation. Probably fine if she has enough capital to support herself and not require any financial assistance from elsewhere but would suggest getting legal advice as giving away a large asset can cause issues

Something seems incomplete or inconsistent in the above.

Normally it is not possible to have the use of a "council house" if you own a property.  Is the phrase "council house" being used in a different context to that which I imagine?

Not always true. You could for example be allocated a council property on the grounds of medical need, owning your own home would not preclude you from that. I'm sure there's other examples where this could occur too.