signing your house over to your children the advantages ?

[Guest]

Originally Posted by Pumpkin Pie

The tax man will get you one way or another!

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No they won't. It will depend upon circumstances.

[Floridarules]

Originally Posted by Tinkermom

I’m sure I’ll be shot down but hey ho.

Most of the older generation were lucky enough to buy their homes for the average house price of £5-10k and whilst I don’t doubt they worked and paid taxes their house prices benefited from the boom their wealth wasn’t earned it was just dam luck.

For example my grandparents paid £11k for their home when they died a few years ago the same house was worth a staggering £870k they paid off their £11k mortgage ages ago from a lucky Pools win. Grandpa died grandma needed care which was capped as per social care rules. This still left over £850k in the estate after her death.

People are living longer than before those living longer have on the whole made their wealth through luck in house price increases so why should my children’s generation be worse off by paying more in taxes for social care when they have no chance of ever having the growth in house prices that my grandparents had. I think it’s absolutely shocking and should be treated the same as fraud if you sign over your assets to avoid paying care charges, of course you should pay towards them. It’s absurd to say well they’ve paid their taxes, unless they’ve had jobs paying in excess of £150k per year there’s no way they’ve paid enough in taxes to cover even six months in a nursing home. Totally flawed argument.

Rant over, happy Sunday all.

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This may be true but I have also know of a family whose family home was sold and the elderly lady lived for 2 and half years in the Care home which basically wiped out the entire value of the family home. This does not seem fair...
Not everyone lives in the South and have houses worth so much...

[Welly]

I would never recommend signing property over to children; there are other ways to protect your home that do not have the possible far reaching consequences of doing this. My advice is to seek out a local solicitor, who is familiar with wills and trusts, who can advise you as to the best solution to keeping assets secure.

[sully301]

i have seen through my work instances where the parents have done this and lived to regret it. Once someone becomes quite reliant and has high needs the child has wanted them out of the house which wasn't what had been promised. Keeping your own assets gives you choices.

My personal opinion of doing this is that it is immoral - it's akin to the likes of large companies avoiding taxes.

[Jakey Neverland]

I have not read all the replies but the parents would have to pay proven rent to their children I believe if they are to stay in the house. Its a clear tax avoidance so it is not as simple as just signing over the house otherwise everyone would do it.

[tspill]

Originally Posted by sully301

i have seen through my work instances where the parents have done this and lived to regret it. Once someone becomes quite reliant and has high needs the child has wanted them out of the house which wasn't what had been promised. Keeping your own assets gives you choices.

My personal opinion of doing this is that it is immoral - it's akin to the likes of large companies avoiding taxes.

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I know of a situation (extended family) where the house was signed over and there was a lot of work to be done/ Three years later and the work is still not done. Very sad what can happen.