House ownership House ownership
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Thread: House ownership

  1. #1

    EternalOptimist

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    EternalOptimist

    Default House ownership

    My mum is getting on and she want to leave her house to my sister, she has decided to make the transfer sooner rather than later
    Can she simply transfer ownership my sister ?
    Can she simply move to joint ownership ?
    does money have to change hands ?
    are there any cgt implications ?
    anyone have any experience of this type of thing ?


    all serious plus any Russian contributions are welcome


  2. #2

    Lucifer Box

    Guest

    Lucifer Box

    Default

    There has been some change in the law in this area recently, but I believe the general principal still is that your mum has to survive for another 7 years for there to be no inheritance tax due on death. It's a sliding scale after, I think, year 2 or 3. If your mother continues to live in the house, she has to pay a "commercial" rent to your sister.

    As always, this information is worth exactly the same as you paid for it.

  3. #3

    EternalOptimist

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    EternalOptimist

    Default

    lb
    you failed to answer a single one of the questions but apart from that it was a perfect answer. Your cheque is in the post

  4. #4

    Ivor bigun

    Guest

    Ivor bigun

    Default Where there's a will there's relatives

    Yep, your mum can do anything she wants.

    Can she simply transfer ownership my sister ?
    Yes

    Can she simply move to joint ownership ?
    Yes

    does money have to change hands ?
    No

    are there any cgt implications ?
    No if main home for sister. If before 7 years then IHT type taxes apply.
    If second home then CGT applies on a ten year sliding scale - unlikely to be a problem - house prices falling.

    In normal life, Inheritance is THE biggest windfall for couples. If you don't get a sniff of a normal payout (say 150K) that is the equivalent of 5 years saving on decent contract wages. It makes you think eh?

    Perhaps you should visit her more often!

  5. #5

    AtW

    Guest

    AtW

    Default .

    > all serious plus any Russian contributions are welcome

    swine :rolleyes

  6. #6

    EternalOptimist

    Guest

    EternalOptimist

    Default Re: .

    ivor
    thanks, how do I arrange the transfer, do I have to involve the solicitor who holds the deeds ( I am not sure who holds the deeds just now)



    ATW - oink

  7. #7

    Lucifer Box

    Guest

    Lucifer Box

    Default Re: .

    does money have to change hands ?
    No
    Ivor, I do not think that is strictly correct. If EO's mum does not pay his sister a commercial rent if she continues to live in it after signing it over, the house would not be removed from EO's mum's estate when IHT is calculated.

  8. #8

    Lucifer Box

    Guest

    Lucifer Box

    Default Re: .

    you failed to answer a single one of the questions
    Ah, one of the hazards of asking questions at CUK.

  9. #9

    4Contractors

    Guest

    4Contractors

    Default Re: .

    Look up 'tenants in common' - not totally sure how this works but it may be a useful way of handling this situation financially and legally.

    The basic principle is that the property would be jointly owned by your mother and sister and if anything should happen to either of them the property passes to the other automatically. This is a very common arrangement between unmarried couples, etc nowadays.

  10. #10

    ASB

    Guest

    ASB

    Default Re: .

    If money doesn't changes hand for the purchase then it will probably be ineffective for IHT Purposes (assuming mother survies the requisite 7 years anyway).

    If money doesn't change hand for the rent then a tax bill could accrue to mother for the notional rent that should have applied. [Great eh, give away a portion of the house, still get taxed on death and also pay tax to live in it]

    It might be a good idea to look up the [new] preowned assets tax.

    IHTH

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