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Stuart J
Stuart J, Solicitor
Category: UK Law
Satisfied Customers: 19422
Experience:  PGD Law. 20 years legal profession, 6 as partner in High Street practice
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me and my wife want to change the names on our property deeds

Resolved Question:

me and my wife want to change the names on our property deeds of our house,which is worth £125,000 to our two adult children,how do I do it and how much will it cost
Submitted: 8 months ago.
Category: UK Law
Expert:  Stuart J replied 8 months ago.

Hello, I am Law Denning and I am a practising solicitor in a High Street practice. I have been an expert on this website in UK law since 2008. During that time, as you appreciate, I have answered thousands of questions from satisfied users, I might not always respond in minutes. Please bear with me in that case.

It is with pleasure to try to assist you with this today. Please bear with me while I gather some further information from you in order for me to be able to advise you fully.

Unless I have all the facts that I need, my answer would not be accurate.

Is there a mortgage on the property?
Customer: replied 8 months ago.


no mortgage it's fully paid for

Expert:  Stuart J replied 8 months ago.
thank you. Change the names to what? Another person or simply change the name but you still own it?
Customer: replied 8 months ago.

change the names to our two adult children so that when we die they can do what they want with it as it is theirs


 

Expert:  Stuart J replied 8 months ago.


Are you continuing to live in it?

Is this to escape care fees or inheritance tax?



Will you pay rent if you continue to live in it?



The reason I say that is that if you transfer the
property into your children's name, they can sell it now and spend the money on
whatever they wish.



If you transfer it to your children without them
paying full value and you give yourself a life interest in the property and
continue to live in it without paying rent, it is called a "gift with
reservation" which is not a gift at all but a sham gift intended to avoid
inheritance tax and avoid care fees.



In both cases, the transfer into the children's
names can be set aside and the property would still be liable for inheritance
tax on death or care fees payment (apart from the last £23,000) in the event
that either of you were taken into care.



If it was as simple as transferring the property
into children's names during lifetime, everyone would do it. It is not. There
is also no timescale after which the property, having been transferred into
children's names, is safe from inheritance tax or care fees if you continue to
benefit from the property.



The only way of avoiding both is to give it to
the children so it is really there is and they can do with it or sell it or do
whatever as they wish for inheritance tax purposes it is then off the hook after
seven years but for care fee purposes it is never off the hook if the transfer
is done to avoid paying care.



There are lots of trust schemes costing several
thousands of pounds (none of which are done by solicitors I might add) which
purport to avoid the payment of care fees but none of them come with a
guarantee and in some that I have looked at, the financial services company
setting the deal up actually become the trustees of the property which I do not
like it one bit!



In addition, as none of them come with a
guarantee the donors of the gift or in no state to dispute the original
contract if the trust ultimately fails and the transfer is set aside.



Of course, I don't know why you are intending to
do this and I don't know whether you do intend to live in the property to be
above is the case you know the situation.



If that is not the situation and it is somewhat
different, please let me know and I will advise you appropriately.



Does that answer the question? Can I assist
further or answer any specific queries?



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Regards.



PS Experts on here are online and off-line all day each day and
weekends so please bear with me if I do not get back to you immediately.



PS. I use voice type, voice recognition typing because I only
type with two fingers and it would take me ages. Sometimes, a computer does not
hear me correctly and you will get an incoherent word. I do try to but
sometimes they slip through. I apologise therefore if anything doesn't make
sense. It is me losing it, not you. Just ask if anything is not clear please.

Customer: replied 8 months ago.

we don't need to avoid care fees as this will never happen my son and daughter live doors away from us and if we need care my daughter would give up her part time job and become our carer if neede,we just want to give it to them


 

Expert:  Stuart J replied 8 months ago.


Assuming that you have taken all the above into consideration and
if you intend to continue to live in the property, you should really grant
yourself in the transfer the right to live in the property for life. I accept
that you are unlikely to fall out with them but I had exactly the same issue on
here two days ago where the property was transferred 20 years ago and the
children are now selling it from underneath the parents and they are panicking.
B

Better safe than sorry for the sake of a few extra words.



There is no legal reason why you cannot do the transfer into your
children's name yourself provided there is no mortgage.



You need to complete and submit to the land registry forms TR1,
AP1 and ID1 . The ID1 needs a photograph certifying by a solicitor as a true
likeness for which the solicitor will charge you about a fiver. There is a fee
depending on the value of the property which the land registry will tell you. The
fee goes with the application.



If you don't mind spending a couple of hundred quid, a solicitor
will do this for you for between £200 and £300 plus VAT plus the land registry
fee and if you have never done it before, that might be money well spent.



The solicitor would also draft into the transfer the fact that
you have the right to live in the property for life

Stuart J, Solicitor
Category: UK Law
Satisfied Customers: 19422
Experience: PGD Law. 20 years legal profession, 6 as partner in High Street practice
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