Inheritance tax or Add name to Deeds?

Oldtimer29

Thanks all. I am still a little confused. We are not wishing to go through gifting and I thought a legitimate option is through 'transferring'? Found the below info from another website:

Transferring property to your children

You might want to transfer a share of your property to a child for a few reasons, such as giving them a foot-up on the property ladder. It might also be that you want your children to avoid Inheritance Tax (IHT), but you also want to remain living in the property.

A transfer of equity might be the right option for you if this is the case. The transfer of equity process is the same as transfers between spouses.

If the equity/mortgage is over £125,000, your children will have to pay stamp duty on their received share.

Oldtimer29

Grumpy_chap said:

Oldtimer29 said:

They are intending to add my name to the house they currently live in. From what I read, I understand gifting is not a viable option as they would need to either move out of pay me rent. 

Therefore I thought that the most appropriate option is to add my name to the title deeds. Is it not the case that if they survive another 7 years, it would not be classed as a gift or part of their estate?

That would still be GWR (gift with reservations) so not avoid IHT.

It may still be DoA (Deprivation of Assets) should either parent require care.

The part of your parents house will still count as your asset so can be considered should you need to claim UC or divorce etc.

You will still be subject to CGT whenever you come to sell your part ownership.

This is really just fraught with downsides and difficult to see what upside there is.

We were hoping the upside is that should I need to pay either stamp duty or capital gains tax, this would much lower than the inheritance tax