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?
If you have not done already, please don't forget to positively
rate my answer service even if it was not what you wanted to hear. You should
now see a series of buttons which enable you to rate my answer service
If you don't rate it positively, then the site keep your deposit and I get 0
for my time. It is imperative that you give my answer a positive rating.
It doesn't give me, "a pat on the head", "good boy" (like ebay), it is my
If in ratings you feel that you expected more or it only helped a little,
The thread does remain open for me to answer follow-up questions
after rating my answer service.
Rating doesn't close the enquiry at
all even though the site may give that impression. It remains open for you to
read and ask for further clarification.
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.