buying a house off parents

Keep_pedalling

NorthYorkie said:

Don't overlook Inheritance Tax. Your parents will be making a gift of £200,000 which is a potentially exempt transfer. Actually a better name is a 'potentially chargeable transfer' because if either of them dies within 7 years of the gift, their share of that value will be added to their estates for Inheritance Tax purposes. Of course, whether any tax is actually due will depend on the value of their estates and the availability of any nil rate bands.

The value is not added to the estate, it simply takes 7 years for it to fall out if the estate. Gifting never has a negative impact on IHT at worst it means the same amount of IHT needs to be paid as it would have been if the gift had never been made.

elsien

born_again said:

I would also be careful as if parents need to go into care, then that will be classed as depravation of assets. Buying house well under sale value

May be. Not will be. 

Too many unknown facts here such as other assets, for example.

artyboy

user1977 said:

Deprivation. Important difference between being deprived and depraved.

In the context of avoiding care home fees, many on here would say it's one and the same thing...