Transferring To New Joint Tenant After

Cliffavalanche

Dear MSE Forum - My mother died last year leaving me half of the home in her will (Sharing with my father who will continue to live there - They were Joint tenants I think). We need to change the land register to half in my name. Can we do this ourselves without paying for a land registry person (to avoid further charges?) - Or is it best to do this with a professional? Many thanks for your help. Chris

Cliffavalanche

I meant to say After The Death of My Mum BTW!

Cliffavalanche

I think my folks ware actually Tenants In Common (confusing isn't it). But my Mum has left me half of the family home and this needs to be transferred to my name now she has died.

Keep_pedalling

Cliffavalanche said:

I think my folks ware actually Tenants In Common (confusing isn't it). But my Mum has left me half of the family home and this needs to be transferred to my name now she has died.

Unless you actually live with your father that would be a mistake. Normal practice is to leave the surviving spouse a life interest in the house and if your mother’s will did not do this then I would do a deed of variation to create one. This creates an immediate post-death interest trust, and the trust becomes the legal owner of her share with your father being the beneficial owner of the whole property. Your inheritance from your mother comes to you on your father’s death.

The advantage of this is that you will avoid any CGT liability when the house is eventually sold, and if you are not already a home owner you will not lose your first time buyer status or have to pay an additional 3% SDLT if you were to buy your first home while still owning a share of the family home.

Cliffavalanche

Thanks Keep Peddling - That's new info. I don't know if this makes any difference but the home is worth about £300,000 and I don't think Capital Gains Tax will affect me if my Dad dies first (under the threshold?) . I think my parents were Tenants In Common (50/50) and I think my Dads solicitor said we should get the Land Registry changed to transfer my name and remove my Mums. This is just incase my Dad loses mental capacity and needs a care home (as did my Mum) and this protects half the homes value from being used for his care. Does this make sense? Chris

Keep_pedalling

Cliffavalanche said:

Thanks Keep Peddling - That's new info. I don't know if this makes any difference but the home is worth about £300,000 and I don't think Capital Gains Tax will affect me if my Dad dies first (under the threshold?) . I think my parents were Tenants In Common (50/50) and I think my Dads solicitor said we should get the Land Registry changed to transfer my name and remove my Mums. This is just incase my Dad loses mental capacity and needs a care home (as did my Mum) and this protects half the homes value from being used for his care. Does this make sense? Chris

Not really, if you father lives for another 10 years and you then sell the property any increase in value on your share will be subject to CGT unless it also happens to be your main residence.

Putting your mum’s share into an immediate post-death trust has the same effect as you owning it, that half of house cannot be used for care costs or be left in a will to anyone else. 

Do you still live with your father? Are you already a home owner?

Cliffavalanche

Thanks for your message again and info KP - I don't live with my Dad and I'm not a home owner at present (I wish...) I haven't heard about what you have mentioned. My Dad inherited all of my Mum's estate and savings as per the will and no probate was due - I just got this through. (But because my parents changed the registry to Tenants in Common we were instructed by my parents solicitor to see a property lawyer to get the land registry changed). I will speak to someone in regard to your suggestion. It's all new to me and I wasn't aware of what you are suggesting. Chris

Cliffavalanche

I'm not sure if my Dad will live for many more years as he is already 86 and has a few health issues.

RAS

Putting the property into you name now is unwise, unless you are living with and intend to live with your father until his death.

With an IPDI trust in place, dad can live there as long as he is well. It he needs to go into care, half the value of the house is protected from care fees, so you'd get that when it's sold. 

If he dies before the house is sold, and you inherit his portion, the estate can sell the house and pay off any care debt. And you retain your first time buyer status and there is no CGT to pay. Or you can take out a small mortgage to pay off the debt if the house is what you want, where you want to live.

If you transfer the 50% portion of the house to yourself now, you will be hit by a CGT bill if the value increases and lose your first time buyer status.

And have to pay unnecessary fees to the unnecessary property transfer.

Can't see why you want to be stung by three lots of unnecessary fees and taxes?

Cliffavalanche

Thanks RAS and KP- I will look into what both you guys have spoken about. My Dad and I were following what we were told by his solicitor. I feel quite overwhelmed by this new info as it of course goes against what the solicitor said. Just to clarify, my parents home status was changed to tenants in common many years ago. Should we now transfer the deeds to my father only? And then we create an IPDI Trust? I want to do the right thing for us both and it's a worry doing something different to what his solicitor advised (now my Mum died last year). As I'm sure you are both aware it is a stressful time and my Dad and I are not specialists, hence seeking advice from the solicitor who handled my parents wills etc. I was not expecting to get another take on this situation when I posted on the forum. My best wishes and thanks - Chris