Seven years are up!

When we bought our present property we put it in the name of our eldest daughter. Seven years elapsed yesterday and she is now officially the landlord. If either my husband or I had to go into a care home before then the house could in theory have been sold to help pay for the care home fees. Not that I think it would have been necessary, as we probably have enough dosh to cover that eventuality.

Have other posters put their home in their children's names?

Re: Seven years are up!

I do think about it Tara but what if i move house . I suppose i should really .

Does it cost a lot to do this ?

Could the house go into two names ie son and daughter and what about tax implecations for them

Re: Seven years are up!

If she doesn't live there councils can still fight legally to take equity for care costs. IHT still applies and capital gains will apply if it's not her main residence.

Re: Seven years are up!

I was advised against this because if any of my three children died or divorced the spouse could demand their share and force a sale thus leaving me homeless.

Re: Seven years are up!

Obviously you need a solicitor to advice you. It could have tax implications if your children own their own homes. Our daughter's home comes with the job, as she is a vicar. Our other two daughters didn't want it in their names as they have their own homes.

Re: Seven years are up!

We went one step not to mention several thousand miles further.

Technically as well as legally we could claim Benefits, indeed I know of a couple of people who have done the same as we have and DO claim Benefits, but I believe that is taking the piss too far.

Re: Seven years are up!

I have researched this and also asked those who used to be able to legally find ways round taxes, particularly Inheritance Tax (IHT) by 'gifting' or using Trusts. This is no longer really possible as loopholes have been closed. There are so many pitfalls it's hardly worth the hassle if it doesn't work out. HMRC have it all covered in their rules and local councils also have rules when it comes to this and if ever the person renting the property, after having 'gifted' it to their children or another person, needed nursing care they could still be deemed as owning the property so it could be legally taken to pay fees. All eventualities are covered by the authorities, as is usually the case!

"In order to erase the IHT liability, the gift must be made with no strings attached. If the gift has conditions, or you benefit from the home in some way such as continuing to live there, it will be known as a “gift with reservation of benefit” and will remain in your estate. "

https://www.telegraph.co.uk/financia...e-to-children/

Re: Seven years are up!

That's right the seven year rule does not apply if you are occupying the property. So the house has to be included in probate. Some councils have taken cases to court to prove that owners transferred the title in order to avoid care fees. Depends on the local authority.

Re: Seven years are up!

That is why people then paid rent to those who were 'gifted' the property, which it was reckoned got round those rules. It was then deemed that rent paid had to be the 'market rent' which then meant you were living in a house you had 'gifted' to avoid tax but then had to pay out a lot of money in market rate rent which may have been money you didn't have. What is the point? Two thing are certain in life – death and taxes and it seems, for most, that's just how it is!

Re: Seven years are up!

So do things illegally. There are ways, many very simple. Sorted.