Parent wants to Sign House over to son Deeds with Land registry

ianflying

Hi 

My Dad wants to sign his property over to me and will then live in the property for the rest of his life. He is 77 and wants to do this now. 

How does he go about doing this as the deeds are online I believe. Will he need to contact a Solicitor or can he do this online. 

Are there any tax implications for me in the future. Property is worth £150 ish

Thank you

Emmia

Is he trying to avoid potential care costs? I can think of no other reason that someone whose estate is well below IHT thresholds would do this... (I presume you meant £150k property).

If he's doing it to avoid paying for care, it won't work as the LA will say he's deliberately deprived himself of assets - and will charge him as though he still has a house.

silvercar

I can’t think of a good reason to do this.

If he has the right to live in it, it will still fall within his estate when he passes.

when you sell it, you eventually get a CGT liability based on the increase between selling price and it’s value when transferred to you. The latter being it’s a value as a property with an occupant who has the right to reside in it.

if he needs care and there were signs that this might happen, the LA will go after if and consider he has deliberately deprived himself of assets.

unless there is some family reason for gifting it to you to prevent a claim by another family or ex family member, I would review the idea.

theoretica

Also, if you don't already own a property but may buy one in future it may have stamp duty implications for you.

elsien

If you marry and then divorce, then he would lose his home.
if you end up in debt and go bankrupt, then he would lose his home.
if you two have a falling out, then he would lose his home.
if you don’t live there, but at some point need to claim means tested benefit, then it would be counted as an asset. If you need to sell, because you can’t afford to keep it, then he would lose his home.

He is giving up every bit of security that he now has. Is that really what you want for him?

Robin9

To add -  do you want to be a Landlord - rent book,  insurances, gas checks, elec checks ....................

amnblog

I'm afraid that if dad gets legal advice (and he should do), he likely to discover this plan will not achieve what he intends.

ianflying

Thanks for all your comments. What if in 10 years time he needs care ?

At what point will a Council typically not chase his assets, surely there is a cut off !!

Emmia

ianflying said:

Thanks for all your comments. What if in 10 years time he needs care ?

At what point will a Council typically not chase his assets, surely there is a cut off !!

At 77, there is an obvious risk of needing care at some point in the not-too-distant future - I don't think there is a cut off, LAs will go back as far as they need as their budgets are finite, with many people calling upon them. 

*Also, does your father want the cheapest possible care, or would he rather end his days in some comfort? His house is the financial means to ensure he gets this.

MorningcoffeeIV

ianflying said:

Thanks for all your comments. What if in 10 years time he needs care ?

At what point will a Council typically not chase his assets, surely there is a cut off !!

There surely isn't. They can go back as far as they want.

Especially when it's such an obvious deprivation attempt.

ianflying

WhEmmia said:

ianflying said:

Thanks for all your comments. What if in 10 years time he needs care ?

At what point will a Council typically not chase his assets, surely there is a cut off !!

At 77, there is an obvious risk of needing care at some point in the not-too-distant future - I don't think there is a cut off, LAs will go back as far as they need as their budgets are finite, with many people calling upon them. 

*Also, does your father want the cheapest possible care, or would he rather end his days in some comfort? His house is the financial means to ensure he gets this.

Thanks what I was hoping for that any care he needs in the future will be topped up by me (his money) as I’m afraid a decent care home costs a fortune and once the money runs out he will be forced into terrible council run care. That was the motivation