Can I Gift My Property To My Children v2

Before you gift your home to a loved one, it is wise to discuss the complexities and risks with a solicitor.

At Myerson, our Private Client and Residential Property Teams are experienced in providing bespoke advice in this area and have outlined their key considerations below.

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Points to consider from a Private Client perspective

Future security – If you gift your main residence to your children, you risk the security of being able to reside there for your lifetime. If your loved ones go through a divorce, bankruptcy or die, your property will form part of their ‘assets’, and therefore, your occupation may be at risk.
Practicalities – If you transfer the ownership of your property to your children, you will no longer be the registered proprietor. This means that any key decisions, such as selling or obtaining an equity release, will no longer be yours to make.
Inheritance tax position – Gifting your property to your children more than seven years before you pass away can reduce your inheritance tax liability. However, obtaining independent legal advice on your circumstances is wise before you decide. At Myerson, we offer bespoke estate planning and would advise whether your estate is likely to be subject to inheritance tax and what the implication would be if you are retaining a benefit from the gifted property.
Future care home fees – If you intend to gift your property to your children to avoid paying care home fees, you may wish to reconsider your position. Even if your property is no longer held in your name, your local authority may still pursue you as the former owner and consider its market value when assessing your needs.

Points to consider from a Residential Property Perspective

Robust legal advice from a Private Client solicitor – Before instructing us to deal with the Transfer, we would require sight of your advice and confirmation that you understand both the benefits and risks of doing so.
Stamp Duty Land Tax – There is usually no Stamp Duty Land Tax to pay on a gift. This is because the duty is assessed based on the consideration, and none exists. However, it is important to note that the gift of the property may affect the recipients’ tax position.
The current mortgage—Lenders are unlikely to consent to any transfer as they would want the new owner of the property to be obligated to make the mortgage repayments. If you are unable to transfer the legal title or opt to transfer the beneficial ownership only, then this would most likely be a breach of your mortgage terms and conditions.

Contact Our Residential Team

Contact Our Private Client and Residential Property Teams

Together our Private Client and Residential Property Teams can provide robust legal advice and guide you through transferring your property from one generation to the next. Please get in touch with us if you would like to receive a quotation for our services.

01619414000

Laura Higgins

Solicitor

Laura has experience acting as a Residential Property solicitor. Laura has experience in a wide range of residential property transactions, including freehold and leasehold sales and purchases, Transfers and Assents.

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Can I Gift My Property To My Children?

Laura Higgins - Solicitor