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no mortgage it's fully paid for
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
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 theproperty into your children's name, they can sell it now and spend the money onwhatever they wish.
If you transfer it to your children without thempaying full value and you give yourself a life interest in the property andcontinue to live in it without paying rent, it is called a "gift withreservation" which is not a gift at all but a sham gift intended to avoidinheritance tax and avoid care fees.
In both cases, the transfer into the children'snames can be set aside and the property would still be liable for inheritancetax on death or care fees payment (apart from the last £23,000) in the eventthat either of you were taken into care.
If it was as simple as transferring the propertyinto children's names during lifetime, everyone would do it. It is not. Thereis also no timescale after which the property, having been transferred intochildren's names, is safe from inheritance tax or care fees if you continue tobenefit from the property.
The only way of avoiding both is to give it tothe children so it is really there is and they can do with it or sell it or dowhatever as they wish for inheritance tax purposes it is then off the hook afterseven years but for care fee purposes it is never off the hook if the transferis done to avoid paying care.
There are lots of trust schemes costing severalthousands of pounds (none of which are done by solicitors I might add) whichpurport to avoid the payment of care fees but none of them come with aguarantee and in some that I have looked at, the financial services companysetting the deal up actually become the trustees of the property which I do notlike it one bit!
In addition, as none of them come with aguarantee the donors of the gift or in no state to dispute the originalcontract if the trust ultimately fails and the transfer is set aside.
Of course, I don't know why you are intending todo this and I don't know whether you do intend to live in the property to beabove is the case you know the situation.
If that is not the situation and it is somewhatdifferent, please let me know and I will advise you appropriately.
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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
Assuming that you have taken all the above into consideration andif you intend to continue to live in the property, you should really grantyourself in the transfer the right to live in the property for life. I acceptthat you are unlikely to fall out with them but I had exactly the same issue onhere two days ago where the property was transferred 20 years ago and thechildren 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 yourchildren'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 truelikeness for which the solicitor will charge you about a fiver. There is a feedepending on the value of the property which the land registry will tell you. Thefee goes with the application.
If you don't mind spending a couple of hundred quid, a solicitorwill do this for you for between £200 and £300 plus VAT plus the land registryfee and if you have never done it before, that might be money well spent.
The solicitor would also draft into the transfer the fact thatyou have the right to live in the property for life
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