What have I done?!?!?

oneandonlyboy

Sorry i'm now lost.

You don't work, so im guessing that your partner is paying for all the bills,food and up keep of your current house.

So if you did split up who would be paying the mortgage if your not working and the bills etc?

I'm currently looking to buy with my girlfriend who has a huge deposit to put down and i'm pushing for a contract where i dont want any of her money/deposit if things dont work out only what value is in the house if any that we have both paid towards.

neas

i think its 7 years for any asset changeover (over a certain amount i think its like 7k or something maybe 3k).

So if you gift someone your house then die... you have to pay Inheritance tax... it sux .

MrDT

sammiea1976 wrote: »

do you think the prices would have gone back up?

This is just begging for a load of comments that should probably be in the houseprice subforum. Nobody can accurately predict with any certainty what will happen to prices.

That said, you asked if we 'think' prices will have gone back up... I for one don't. I think they'll still be declining slowly. But my guess is as good as yours

sarah_elton

You do need to speak to your dad about inheritance tax.

You are in the same position by joint owning with him as an unmarried couple are when it comes to inheritance tax. That position is that if the house passes to the 'partner' (you in this case), you are liable for inheritance tax.

There's actually two issues:

1) Your dad's will MUST state that your house is to be left to you. Because his name is on it, if (god forbid) he were to pass away and it wasn't specified, technically other family members etc MAY be entitled to some claim on the asset.

2) Inheritance tax applies to everything over £263,000. So, for your dad's whole estate, the first £263k is tax-free, and everything above £263k is taxed at 40%. Therefore, say your dad's estate was worth £2m, the bill for tax would be (£2m-£263k)*0.4 = £694,800. This has to be paid within 6 months (if I remember rightly).

Now, if your dad has done the same thing with all his kids, i.e. joint owns houses with them, it could get sticky. Who's house gets the £263k exemption applied? Do you split it?

I'm sure given the size of his estate your dad is tax savvy and has taken advice from a solicitor. But you need to clarify with him what the arrangement is. Touch wood he'll live to a ripe old age, but just in case, you don't want to be in the terrible position of having lost your dad, and then being hit with a huge tax bill on your house.

It would be MUCH simpler if the house was solely in your name (assuming, again touch wood, your dad lives for at least seven years).

AMILLIONDOLLARS

sammiea1976 wrote: »

But the house is nothing to do with my partner, his name is not going on the mortgage or the deeds.
The easiest way for us was doing it as is, my dad getting mortgage and remortgage, that way if partner and i split - he has no claims

But as you won't be working, its your partner who'll be making the payments on the loan, this would give him some kind of claim should you split, obviously he'd have to take you to court!!

sammiea1976

sarah_elton wrote: »

You do need to speak to your dad about inheritance tax.

You are in the same position by joint owning with him as an unmarried couple are when it comes to inheritance tax. That position is that if the house passes to the 'partner' (you in this case), you are liable for inheritance tax.

There's actually two issues:

1) Your dad's will MUST state that your house is to be left to you. Because his name is on it, if (god forbid) he were to pass away and it wasn't specified, technically other family members etc MAY be entitled to some claim on the asset.

When the forms were filled out for the new house i cant remember the exact wording the it was something like shared ownership, if one was to die then the other would have full ownership of the house - being me if he dies first.

2) Inheritance tax applies to everything over £263,000. So, for your dad's whole estate, the first £263k is tax-free, and everything above £263k is taxed at 40%. Therefore, say your dad's estate was worth £2m, the bill for tax would be (£2m-£263k)*0.4 = £694,800. This has to be paid within 6 months (if I remember rightly).

Now, if your dad has done the same thing with all his kids, i.e. joint owns houses with them, it could get sticky. Who's house gets the £263k exemption applied? Do you split it?

My dad hasnt done the same, he is not in joint ownership with the others, only me, as the others are not going through messy divorces - which is the only reason he has done this the way he has, the others have their own houses in their own names.

I'm sure given the size of his estate your dad is tax savvy and has taken advice from a solicitor. But you need to clarify with him what the arrangement is. Touch wood he'll live to a ripe old age, but just in case, you don't want to be in the terrible position of having lost your dad, and then being hit with a huge tax bill on your house.

It would be MUCH simpler if the house was solely in your name (assuming, again touch wood, your dad lives for at least seven years).

The house cant be in solely my name until all the crap is sorted with the courts with regards to the ex. Once that is over then he will take his name off the deeds.

sammiea1976

Sorry there is more answers to your question above in your quote - dont know why it turned out like that!

oneandonlyboy

But you still would be liable for inheritance tax if your dad died within 7 years of signing over the house to you, so you would need to get that sorted.

Also if your partner is paying all the bills and the possible mortgage im sure if you broke up would claim money via the courts.

sammiea1976

oneandonlyboy wrote: »

Sorry i'm now lost.

You don't work, so im guessing that your partner is paying for all the bills,food and up keep of your current house.

So if you did split up who would be paying the mortgage if your not working and the bills etc?

I'm currently looking to buy with my girlfriend who has a huge deposit to put down and i'm pushing for a contract where i dont want any of her money/deposit if things dont work out only what value is in the house if any that we have both paid towards.

Thats right he pays for everything. If we did split then i would have to go back out to work, at the moment if he left i obviously wouldnt have to find mortgage money just bill money, but if we do go ahead with the move i would then have to find mortgage and bill money.

sammiea1976

oneandonlyboy wrote: »

But you still would be liable for inheritance tax if your dad died within 7 years of signing over the house to you, so you would need to get that sorted.

Also if your partner is paying all the bills and the possible mortgage im sure if you broke up would claim money via the courts.

Maybe he would, but heres hoping we wont split as i have just found out im expecting our 2nd child (my third).
Hes happy to pay the mortgage, he wants us to have a better house for the kids, he wants us to move somewhere where we dont need to move from again in the future, where we can grow old.