Transfering Property

[Crazyface]

My son is disabled and we were worried about his future after me and the wife have gone.
We got professional advice on trust funds etc.

During the meeting with the financial advisors I asked about signing the house over to my lad, sooner rather than later, worried about the “7 year rule” etc and we were advised the 7 year thing is an Urban myth, for instance, if we signed the house over and 10 years down the line, god forbid me or the wife has passed away and the other one needs to go in to care, the local authority can still use the house as part of the remaining spouses assetts as putting the house in your sons name did not negate the reason for you needing somewhere to live and was purely to try and avoid other financial liabilities.

As others have said, I would go and get proper legal advice rather than information off us lot on here.

I think I get better advice on here as people only post from personal experience rather than guess work like the internet

 

[Neilds]

I think I get better advice on here as people only post from personal experience rather than guess work like the internet

I disagree with this. It only holds true if the person posting from experience is in exactly (and I mean everything is exactly) the same position as you. Any slight variation in circumstances can make a huge difference when it comes to financial transactions

 

[PaulMdj]

I think I get better advice on here as people only post from personal experience rather than guess work like the internet

Unless we are lucky and someone on here is an expert in the field you are questioning about then you are taking a big risk.

Everyone on here is well meaning, but you’ll have no recourse if you use that advice and it goes wrong.

 

[PJ87]

Unless we are lucky and someone on here is an expert in the field you are questioning about then you are taking a big risk.

Everyone on here is well meaning, but you’ll have no recourse if you use that advice and it goes wrong.

I think we can all agree on the best advise here..

Pay for proper legal advice on the matter!

 

[jim8flog]

Another, inheritance

Hindsight is a great thing -

the best advice would have been to have had a discussion with the executors and other beneficiaries and agreed to have your son inherit and not you.

 

[GreiginFife]

I think I get better advice on here as people only post from personal experience rather than guess work like the internet

You do realise this IS the internet, right?

 

[PJ87]

You do realise this IS the internet, right?

I'm not sure he does sometimes

 

[Val]

Can this not be done as a deed of gift? I know it’s possible for kids to “gift” parents property this way but not sure the other way around.

 

[Crazyface]

Can this not be done as a deed of gift? I know it’s possible for kids to “gift” parents property this way but not sure the other way around.

Yes you can "gift" but then you have to live 7 years for no tax to be due. Why should I have to pay tax of a property I inherited, that has gained value, but I am giving away? So therefore I am not getting any benefit. Doesn't make sense.

 

[Crazyface]

Also, I could wait till I die and leave it to them in my will, and again, no tax. It's bonkers. Makes no sense at all.

 

[GB72]

What we are finding is that because I inherited this, and the value has increased, I have to pay a tax on something that I want to give away for free because it has increased in value since I got it. But wasn't taxed when I got it as it was below the tax inheritance value. What a sack of poo this is!

I am guessing that it is capital gains tax due to the increase in value irrespective of you giving it away.

 

[SwingsitlikeHogan]

Yes you can "gift" but then you have to live 7 years for no tax to be due. Why should I have to pay tax of a property I inherited, that has gained value, but I am giving away? So therefore I am not getting any benefit. Doesn't make sense.

Bottom line as HMRC will see it is that it is none of their business how much you choose to sell the inherited property for - that you choose to give it away is your matter. Of course if HMRC look for £X CGT, there is nothing stopping you selling it for £X, thereby not costing you anything. How you are paid the £X by the buyer is again between you and the buyer.

 

[GB72]

Unless we are lucky and someone on here is an expert in the field you are questioning about then you are taking a big risk.

Everyone on here is well meaning, but you’ll have no recourse if you use that advice and it goes wrong.

To be fair, even if you find someone who is an expert in the field or has extensive knowledge, they are unlikely to give away full and detailed advice for which they could be held liable if it proves incorrect, for nothing on here especially without full details of all the facts and documents involved. Many professionals in this area can have any and all advice given held as formal professional advice even if typed on here.

 

[Crazyface]

Bottom line as HMRC will see it is that it is none of their business how much you choose to sell the inherited property for - that you choose to give it away is your matter. Of course if HMRC look for £X CGT, there is nothing stopping you selling it for £X, thereby not costing you anything. How you are paid the £X by the buyer is again between you and the buyer.

Unfortunately this is not the case. I would be a lot of trouble if I tried this, apparently. Of course they would have to find out.........but if they did........

 

[SwingsitlikeHogan]

Unfortunately this is not the case. I would be a lot of trouble if I tried this, apparently. Of course they would have to find out.........but if they did........

Sorry…think I misunderstood the context of the transfer…