Parents signing house over to me

Confusedplum

Hi all, hoping someone can provide an insight to any implications this may have on me. 

My parents (both early 50’s) have recently separated due to an affair on my dad’s part. My dad has said that my mum can have the house, but nothing is in writing and there are no plans to officially divorce. My mum’s fear is that if anything happens to her, the house goes to him and potentially then his new gf if they were to marry. My mum wants the house signed over to me as soon as possible. I have a great relationship with my mum and she would remain there for as long as she wants. 

For context, their mortgage is paid off and I already own a property with a mortgage however am soon to be in a position of buying next home in cash. Their total estate wouldn’t be close to inheritance tax thresholds anyway, so it’s not to avoid this. 

I just want to check I won’t be negatively affected before I agree to this? 

Phoenix72

A bad idea for so many reasons.

What she needs to do is get proper legal advice to get the property in her sole name. 

bobster2

Confusedplum said:

I just want to check I won’t be negatively affected before I agree to this? 

Complexities to think about..

• Capital gains tax on a property you own but don't live in.
• Additional Stamp Duty Land Tax - as you own multiple properties.
• Inheritance tax complicaitons - as this will be a "gift with reservation" with your mother still living there.
• If your mother needs funds in later life - she would no longer be able to release funds by downsizing / equity release.
• If you were to pass away - the house your mother lives in would be part of your estate. So you would need to think carefully about your will. What if the house needs to be sold?
  

Cressida100

I don't think your mum should be making any life changing decisions any time soon. She's acting out of anger (and grief) at the moment. 

user1977

Absolutely bonkers idea for all the reasons already stated. They should sort out their separation and not get you involved.

Confusedplum

user1977 said:

Absolutely bonkers idea for all the reasons already stated. They should sort out their separation and not get you involved.

I am involved regardless, just because things are civil now does not mean that he will not turn nasty and try to make a claim on the house in future and the house is the only thing they have to pass down to me. 

pjs493

If they don't want to divorce for whatever reason (usually this is on religious grounds), they can decide on the division of assets either amicably or with solicitors involved (or possibly just a solicitor to check over everything to make sure they've not missed anything). Then lodge an official separation via the government website. As mentioned transferring the house to you now causes all sorts of issues and there aren't really any advantages of doing so.

Confusedplum

Cressida100 said:

I don't think your mum should be making any life changing decisions any time soon. She's acting out of anger (and grief) at the moment. 

I say “recently” but she’s had plenty of time now to process everything, and also having a fair idea of what was going on for a while before the separation. She just wants to make sure I’m protected in the long run. 

Brie

Step 1 - help mom get a division of assets agreed and made official including her getting sole ownership of the house.
Step 2 - talk to mom about her getting a will if she doesn't want to get divorced.  In the will she can live everything to you if that's what she wants.
Step 3 - realise that parents can't protect their children as much as they sometimes would like.  Your mom may well need to sell the house to fund her care in 30 years time.  She may decide she does want to divorce because she wants to have a new relationship with that nice guy she met at the bowls club and eventually make a will in his favour.  Be there as support but with no expectations.  

What if she did give you the house (assume she has the right to) and you then have a nasty divorce and have to kick her out because your ex wants his/her cut?

user1977

Confusedplum said:

user1977 said:

Absolutely bonkers idea for all the reasons already stated. They should sort out their separation and not get you involved.

I am involved regardless, just because things are civil now does not mean that he will not turn nasty and try to make a claim on the house in future and the house is the only thing they have to pass down to me. 

A spouse giving away assets like this isn't necessarily going to stop them being taken account of in a divorce. All this is likely to do is make things more messy.

Albermarle

Confusedplum said:

user1977 said:

Absolutely bonkers idea for all the reasons already stated. They should sort out their separation and not get you involved.

I am involved regardless, just because things are civil now does not mean that he will not turn nasty and try to make a claim on the house in future and the house is the only thing they have to pass down to me. 

The statement in bold is the rational reason why your Mum should get divorced, and have a legal financial settlement. Then it is a clean break and no possibility of future claims.

However if the house is the only thing of any significant value, and there is a 50:50 split legal settlement, your Mum will be worse off than now, where your Dad has said she can have the house.

Possibly the best outcome would be for your Dad to give away his half of the house before he changes his mind. Then your Mum starts divorce proceedings. Once divorced she could write her will to leave the house to you.
A lot less messy ?