Transfer of equity into child’s name

Greyhart

Hello, probably not that complicated but it’s confusing me!
Parent and partner own a house outright 50/50 and both on the title. Parent wishes to gift their half in its entirety to a child. Is this done on a TP1 as it is only their share of the title? 

anselld

Sounds like a very bad idea.  Is this the Parents main residence?  What are they hoping to achieve/avoid?

HampshireH

Bad idea for the child.

They will no longer be first time buyers and will lose any discount they may be entitled to or other schemes designed to support 1st time buyers buy. They will be a homeowner.

They will be tied to a house they may not want to live in.

They will have a responsibility for something they didn't necessarily ask for.

How old is the child? Presumably old enough to understand the implications of such an arrangement?

Parent will also then have no right to the home should partner kick them out. 

SDLT_Geek

anselld said:

Sounds like a very bad idea.  Is this the Parents main residence?  What are they hoping to achieve/avoid?

Legal title cannot vest in someone aged under 18.  Assuming the property is in England or Wales.

I agree that it sounds like a terrible idea.

Noneforit999

If this is to try and avoid IHT or to stop this part being used as part of assets when going into a care home etc, you are best getting advice from a solicitor. 

kingstreet

HampshireH said:

Bad idea for the child.

They will no longer be first time buyers and will lose any discount they may be entitled to or other schemes designed to support 1st time buyers buy. They will be a homeowner.

They will be tied to a house they may not want to live in.

They will have a responsibility for something they didn't necessarily ask for.

How old is the child? Presumably old enough to understand the implications of such an arrangement?

Parent will also then have no right to the home should partner kick them out. 

Child already owns half, so the FTB ship sailed a while ago it seems...

JGB1955

kingstreet said:

Child already owns half, so the FTB ship sailed a while ago it seems...

As I read it, the parent and their partner currently own the house.

Grumpy_chap

kingstreet said:

Child already owns half, so the FTB ship sailed a while ago it seems...

Possibly.  Possibly not.

Greyhart said:

Hello, probably not that complicated but it’s confusing me!
Parent and partner own a house outright 50/50 and both on the title. Parent wishes to gift their half in its entirety to a child. Is this done on a TP1 as it is only their share of the title? 

I first read that the "partner" is the OP's partner and the child of the parent.
I now think it is the OP's parent and the OP's parent's partner.  That would mean the OP is the "child" to whom the half house would be gifted.

As other have asked - what is the purpose for this change?  It is quite possible that the objective would not be met.

How old is the "child"?  Is it the adult child of the parent?  Whole different circumstances if planning to gift the half house to a minor.
Does the child live at the property?
Does the child own another property?  Owning half a property would impact FTB status.
Has CGT been considered?
Is the parent going to pay rent for the use of the half house that is owned by the child?
Is the child going to operate as the LL for the parent (plus partner) and aware of the liabilities and all that entails?
Who pays to upkeep the property?  Insurance?
Does the child have a partner / family?  In the event of relationship breakdown, an ex-partner may seek to claim part of the half house.
Owning a half house that is not the residence of the child would be considered an asset if the child ever needed to claim means-tested benefits.

FreeBear

If the child is married, gets divorced, the share of the property may well become part of the divorce settlement.

Should the child become bankrupt, the OR could conceivably force the sale of the property.

bobster2

Greyhart said:

Hello, probably not that complicated but it’s confusing me!
Parent and partner own a house outright 50/50 and both on the title. Parent wishes to gift their half in its entirety to a child. Is this done on a TP1 as it is only their share of the title? 

Assuming the child is already an adult.

A key question then is why? What is this meant to achieve?

Are parent and partner joint tenants or tenants in common?

If it's about inheritance - what about a will instead?

If it's about inheritance tax - read about "gifts with reservation of benefit" (why this might not achieve what you want) and "residence nil rate band" (why this might not even be necessary).

kingstreet

JGB1955 said:

kingstreet said:

Child already owns half, so the FTB ship sailed a while ago it seems...

As I read it, the parent and their partner currently own the house.

How I read that as parent and child 50/50, I don't know. Odd, thanks.