closing tag is in template navbar
timefactors watches



TZ-UK Fundraiser
Results 1 to 13 of 13

Thread: Transfer of property ownership advice required

  1. #1
    Craftsman
    Join Date
    May 2007
    Location
    London
    Posts
    912

    Transfer of property ownership advice required

    I looking for some advice regarding the transfer of ownership of a property with a family member.

    Can this be done via changing the name on the deeds or does it have to be a transfer of property.

    The property belongs to my mother at the moment.

    Any solicitors on the forum who can advise?

  2. #2
    Craftsman Halitosis's Avatar
    Join Date
    Nov 2016
    Location
    West Lothian
    Posts
    857
    I'm an accountant rather than a solicitor, but recommend you consult a experienced solicitor - and possibly also an accountant depending on the circumstances.
    Probably way off the mark in your case, but often folk consider property transfer in relation to later life care home costs. Such is far from foolproof and sometimes works out considerably more expensive.
    It's not my area of expertise, but I understand local authorities now have improved powers to claim expenses in cases where a property has been transferred for no particular good reason or benefit to the individual, and where care home costs might be envisaged - especially if the ageing vendor continues to reside in the property.
    Tax implications include potentially reduced inheritance tax threshold through loss of main residence allowance, and even CGT if it becomes a second property.
    As I say - not suggesting such is the case for you, but good legal advise is worthwhile when it comes to big decisions and transactions.

  3. #3
    It would definitely depend on the circumstances.

    Weíve had advice for transferring property between family members, and Iíve transferred a property in my name to another family member - but advise for your specific circumstances would be my recommendation. Unless you just want generic information on the process, without considering all the potential implications and liabilities.
    It's just a matter of time...

  4. #4
    Craftsman
    Join Date
    May 2007
    Location
    London
    Posts
    912
    Thank you for the suggestions. Have contacted a solicitor for specific advice.

  5. #5
    Master
    Join Date
    Dec 2014
    Location
    Unknown
    Posts
    3,838
    Blog Entries
    1
    You will need a solicitor and they can draw up a deed of gift. Any gifting will likely create CGT exposure and then you need the gifter to survive 7 years for IHT avoidance.

    Also if this is to avoid care home fees the local authorities may consider this a wilful deprivation of asset and look to claw back.

    Bottom line talk to both an accountant and solicitor. All depends on your objectives.

  6. #6
    Journeyman DONGinsler's Avatar
    Join Date
    Jan 2021
    Location
    Toronto
    Posts
    166
    I would consult a real estate attorney and ask about an Alter Ego Trust if the UK has probate fees

    DON

  7. #7
    If itís mortgage free itís a relatively straight forward process. Most conveyancers can do this for you. You should take tax advice or look up potential implications, notably stamp duty and possibly inheritance tax.

  8. #8
    Craftsman
    Join Date
    Sep 2015
    Location
    Surrey
    Posts
    909
    No stamp duty if no consideration being paid, but a gift to family member is a market value disposal for cgt and a PET for IHT.


    Sent from my iPhone using Tapatalk

  9. #9
    Master
    Join Date
    Oct 2010
    Location
    Leics/Notts border
    Posts
    1,244
    The valid point Montello makes about ĎAlso if this is to avoid care home fees the local authorities may consider this a wilful deprivation of asset and look to claw back.í

    My understanding is that councils can go back indefinitely & claw back assets for care?

  10. #10
    Quote Originally Posted by g40steve View Post
    The valid point Montello makes about ĎAlso if this is to avoid care home fees the local authorities may consider this a wilful deprivation of asset and look to claw back.í

    My understanding is that councils can go back indefinitely & claw back assets for care?
    Out of curiosity how they claim back assets you no longer own?

  11. #11
    Master draftsmann's Avatar
    Join Date
    Oct 2015
    Location
    Malta and sometimes bits of Brit
    Posts
    4,786
    Quote Originally Posted by DONGinsler View Post
    I would consult a real estate attorney and ask about an Alter Ego Trust if the UK has probate fees

    DON
    Itís unfortunately not as simple as that as the UK tax regime for trusts is both complex and in some respects punitive, and laden with pitfalls for the unwary. Itís an area of work Iíve been involved with for my entire working life although Iím in the process of winding down and retiring. Iíve had to advise numerous clients that unfortunately what works in one jurisdiction doesnít necessarily work in another.

  12. #12
    Master
    Join Date
    Dec 2014
    Location
    Unknown
    Posts
    3,838
    Blog Entries
    1
    Quote Originally Posted by robert75 View Post
    Out of curiosity how they claim back assets you no longer own?

    Maybe claw back was the wrong expression, the point being that if you have deliberately given away asset then you may still be assessed as having them so your action achieves nothing and may actually create a major headache.

    See. https://www.ageuk.org.uk/information...ion-of-assets/

    Obviously this may not be relevant to the OP.

    Edit. This may mean that you have to ask for your assets back from the person you have gifted them to to pay for care.

    The reality is state funded care is awful so better to hang onto your assets to be able to choose your care providers.

  13. #13
    Master
    Join Date
    Dec 2014
    Location
    Unknown
    Posts
    3,838
    Blog Entries
    1
    Also Ö if the property being gifted is the primary dwelling I believe it is CGT exempt but if they continue to derive the benefit I.e. by living there that can cause problems and you may need to charge rent.

    As above, get some advice.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

Do Not Sell My Personal Information