Inheriting Half a House on Death of First Parent

RHemmings

GunJack said:

doodling said:

Hi,

GunJack said:

housebuyer143 said:

 If you put half that house from your parents in your name then you will likely have to pay stamp duty plus the additional 4% on that share.

I thought that might be the case, I think their will is currently written to pass the half directly to me which could well make us liable.

That would be unusual - most people don't want their children to be able to throw their widow out of the house in that situation.

me throwing one of them out would never even be a possibility, we're quite a close family ...

Probably still better for there to be a formal agreement/situation in writing. 

HampshireH

propertyrental said:

There's another potential catch.

If the local authority believe they gave away an asset (eg 50% of a property) in order to qualify for means tested care costs they could deem it to be 'Deprivation of Assets' and include the valuen that was given away when assessing their assets/eligibility.

If not, everyone going into care would just give their property away and make the tax payer liable!

It's a bit more complicated than that but you can see there are many things to consider......

But the OP parents haven't given away anything in life. It's on death the half a property would be inherited so they would be beyond the need for care.

How is that a deprivation of assets? The owners if each own 50% are entitled to pass that on to who they choose in death. 

GunJack

On the deprivation of assets - I believe they own as Tenants In Common, so can pass on individually.RHemmings said:

Probably still better for there to be a formal agreement/situation in writing. 

Absolutely...there is one now, they just want to revisit/refresh as it's been 20-odd years since the original was done.

jennifernil

Leaving what you own to someone in your will is not deprivation of assets.

If you own a property with your spouse in such a way as to enable you to leave your part to your children, with your spouse entitled to remain in it for as long as they wish, doing so will not be deprivation of assets, or  mean that  children will be liable for LTT or CGT on the 
property.  Take good legal advice on the correct way to do this.

GunJack

jennifernil said:

Leaving what you own to someone in your will is not deprivation of assets.

If you own a property with your spouse in such a way as to enable you to leave your part to your children, with your spouse entitled to remain in it for as long as they wish, doing so will not be deprivation of assets, or  mean that  children will be liable for LTT or CGT on the property.

 good legal advice on the correct way to do this.

they are.....this is all research prior to them going back to the solicitors.