Putting a property in our children's names

[blueroses]

When we eventually sell our Welsh farmhouse we are considering putting our next home in the names of our children, or at least one of them. It will go to them anyway when we pop our clogs. Whilst we would of course pay all the outgoings I would feel it wasn't our ultimate responsibility. This would be a relief for me psychologically as I have had to take over the business side of our affairs, with the help of my kids since my husband's illness, which has left him brain damaged. He was responsible for it all heretofore.

Can we put the house in the children's names, and what would be the implications for them tax wise etc? The two who already own their own properties are reluctant to take on another because they feel they might be taxed as having a second home. They would prefer it put in the name of their elder sibling who doesn't own a property, living as they do in a tied property which is a requirement due to the nature of their profession.

[Richard Webster]

If you use money from a sale to buy a property in your children's names which you then live in then they will be taxed on the rent that HMRC assume they are receiving (whether or not they actually receive any.)

[blueroses]

Originally Posted by Richard Webster

If you use money from a sale to buy a property in your children's names which you then live in then they will be taxed on the rent that HMRC assume they are receiving (whether or not they actually receive any.)

Riiiiiiiiiiight

[Dan S]

Hi Blueroses

If you're simply giving them the property then the only tax implications for you are inheritance ones. It will form part of your estate and would be taxable as such for up to 7 years. Should you pass away during that time the amount of inheritance tax payable would be tapered according to how much time had passed since you gave them the property.

Visit the HMRC website. They have a detailed summary of everything you need to consider when transferring your home into your children's name.

All the best

Dan.

[blueroses]

Originally Posted by Dan S

Hi Blueroses

If you're simply giving them the property then the only tax implications for you are inheritance ones. It will form part of your estate and would be taxable as such for up to 7 years. Should you pass away during that time the amount of inheritance tax payable would be tapered according to how much time had passed since you gave them the property.

Visit the HMRC website. They have a detailed summary of everything you need to consider when transferring your home into your children's name.

All the best

Dan.

Thanks for that Dan. We would of course be giving them the property.

[Dan S]

No problem!

[Danny@Vision]

Dan S is right.