Putting My House Into Daughters Name

[mybutty]

i own my own house. and I would like to put it into my daughters name so when I die she doesn't have to pay capital gains. i'm 60 shes 37. can I do this and how much wold it cost. thanks for any replys

[factor-fiction]

I'm not sure she would pay capital gains tax. Do you mean inheritance tax?

[boxtops]

This needs a solicitor - you need a document which guarantees you that you can live in the house until you die, if you deed it to your daughter.

[whistonian]

Check a solicitors charges for transferring deeds.

[whistonian]

Ditto Boxtops.

[factor-fiction]

Does she live with you?
If it's left to her in your will or under intestacy laws I'm not sure that capital gains tax would need to be paid.

[Zacs-Master]

Some answers on tax implications here:
http://www.hmrc.gov.uk/inheritancetax/pass-money-property/pass-home-to-children.htm

[factor-fiction]

I agree that you need a solicitor if you are going to do it. But i'm just wondering whether it's necessary to do it at all

[EDDIE51]

If it is not done and the questioner needs later in life to go into a care home then the value of the house will be used to pay care home fees and the daughter could end up with nothing. It needs to be done now with the condition that mybutty can live in the house for life. The daughter should live in the house as well or the sale may be regarded as having been done just to avoid care fees.
If it is for inheritance tax avoidance it needs to be worked out by a solicitor to avoid problems.

[factor-fiction]

Yes, we need more information really, mybutty.

[woofgang]

If it is done to avoid care home fees, then whenever it is done it can adjudged as done to avoid fees and fees will be payable. Do get some proper advice.
here's a good starting point
http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS38_Treatment_of_property_in_the_means-test_for_permanent_care_home_provision_fcs.pdf?dtrk=true

[mybutty]

its not to avoid care home fees. my daughter lives with me and my husband and when we die I don't want her to have to pay inheritance tax. looks like a visit to a solicitor then. thank you all very much for your help

[bednobs]

hello, firstly, will your estate reach the IHT threshold? It's set quite high Secondly, does your husband own any ont he house (you say "you" own it) You need to consider lots of implications (for example, if you die, they fall out and she chucks him out, or if she gets made bankrupt, and so the house is taken from her, and consequently you are homeless)

[factor-fiction]

Yes, potential care home fees and Inheritance Tax might be issues (although IHT is not an issue in most cases especially where a widow/widower has an allowance of around £650,000) but mybutty asked about avoiding capital gains tax and I'm not sure that there is any CGT to be avoided

[Buenchico]

If you remain in the house (or retain any other interest in it) HMRC will regard the transfer of the property as a 'gift with reservation' meaning that, subject to the tax threshold actually being met anyway, IHT would still be payable upon your death.

[factor-fiction]

I see now the actual issue was IHT not CG.
Many people fear IHT but in most cases, unless something like a London property is involved, the amount due is either nil or much smaller than people imagine.
The inheritance tax threshold is £325000, or £650000 when a deceased spouse's allowance is transferred over to the surviving spouse. Inheritance tax is only payable if the estate value exceeds this threshold, and the rate of IHT is only applied to the amounts above that threshold.
Are you sure any IHT would be due. And if it were, would it be much?
http://www.hmrc.gov.uk/rates/iht-thresholds.htm

[Wak]

If you are already living with our husband, then presumably you are both joint tenants, meaning that you both own 100% of the house and that both your names are on the Land Registry records and property deeds.?? When the first parent dies (as joint tenants) the remaining parent automatically then owns the full 100% without the need for Probate (I think??)
If the above is so, then you and your husband can now become Tenants- in-Common which means that you will both own 50% of the house each. This can be done F.O.C. through the Land Registry.
When you are both registered as Tenants-in-Common, you and your husband can both make wills leaving your 50% of the house to your daughter on the trust and understanding that the remaining spouse can remain in the house as long as they wish or until they then die.
If the remaining parent later goes ga-ga and requires a care home, then the corporation cannot claim the house as 50% of it will, by this time, belong to the daughter and the corporation cannot claim half a house or force your daughter to sell her half.
Presumably the daughter will not pay any capital gains tax on the value of half a house after the first parents death so neither will she pay any CGT after the second death and she will then own the full house.
There will be Probate to go through after the first death so that the daughter's name can be added to the property deeds and the Land Registry records and presumably a solicitor will be required for this in order to fill out the LR forms correctly.
My wife and I did the above and my house is now owned by myself, my son and my daughter although I am the only occupant.
A solicitor could confirm and explain all the legal stuff for you.
Hope this helps.