will having my dads house deeds put into my name affect and housing benefit or dole i claim?

[joko]

will having my dads house deeds put into my name affect and housing benefit or dole i claim?

my dad has two houses and has 'sort of' given one to me (it will be mine eventually) - i have lived here for 9 years and pay him rent. he is very old and wants to give it to me properly, as my brother is after it and is up to dirty sneaky tricks - but will my name on the deeds or land registry affect my my benefits (i am freelance so sometimes have to sign on to cover some periods)

also what is inheritance tax and how will this affect my future? - my brother is saying "you don't want to get saddled with that at my age" (34) what does he mean? can't make head nor tail of the website so laymens terms please

are ther any othe pros and cons for me if a go ahead with this?

Many thanks

[sense4all]

Joko, probably my first thought would be does your father have a will? Then you have to find out all kinds of other details from him - is it a mirror will[ he leaves everything to your mother ( or a new partner, perhaps)and in the event of her dying everything goes to him?] or are all the things he owns in his name alone? If this house was signed over officially to you as a gift, for you to avoid inheritance tax your father would then have to live for seven years for no IHT to be due on the property.Even in the event of him not living this long the tax liability could be reduced each year he survives. There are so many variable factors involved the value of this house, the value of the other house ,any other belongings that would be taken into consideration when adding up his estate.Would all these things (depending on where you live) total the current minimum allowance which when I dealt with my parents wills was around about 240k if my memory serves. Anything over this you get to give forty ,yes forty, per cent to the goverment. aaaaaargh.

My best suggestion would be to go to the local Inland Revenue Office if you have one close by. Find the local cab and see if they can help get your head around the basics. If you can afford it I would spend some money going to a property law specialist because this is a biggie and spending a couple of hundred quid will potentially save you thousands in the long run, the sooner the better in case Mr Sneaky has a plan!

Cannot comment on the benefit situation as I have only second hand experience through single parent friend said dealing with them use to drive her to the edge of despair.

[Oneeyedvic]

If you are living in a property that is owned by your father you should not be claiming housing benefit now. You certainly won't be able to if it is your own name either.

[themas]

The �240K sense4all quotes is out of date - its now �275K. You do need to get a good idea of the total value of your father's estate (the 2 houses and any other assets) to see whether inheritance tax will be a real issue. If it is, it won't become one where payment has to be made until after he dies, and the longer he lives after giving the house to you the less the liability will be PROVIDED your father does not himself live in the house he gives you. (If he does, it is a "gift with reservation" and the full value of the house will be included in his estate when he dies.)

I agree with Oneeyedvic, but if you own the house and live in it you could still claim job seekers allowance or council tax benefit or tax credits if you are otherwise entitled to them.

[joko]

oneeyedvic - why not? my father is a landlord and owns about 6 properties - why shouldn't he get rent for it?!!

what has the fact that he's my dad got to do with it?

The housing know he's my dad and are perfectly happy with it.

I am 34 - you think my father should keep me?

[Oneeyedvic]

So do you think that everyone who lives at a property that their parents own should get a rent paid for?

If you do then an 18 year old who lives at home but claims benefit should be able to claim housing benefit for renting a room off his mum?

Personally I don't, and if the social are happy about it then I am suprised (and to be honest I think it is disgusting - but hey ho welcome to benefit Britain)

[noxlumos]

Actually Vic, what you are suggesting is not illegal in any way, as long as someone informs the DSS that their landlord is a relative then there is no problem, whyever should there be? I own several properties, generally let to people in vulnerable groups, one of whom is my nephew and this has certainly never been an issue, nor should it be.

[Oneeyedvic]

i apologise as I didn't think that it was legal. If it is then as I said before I am suprised and imho don't think it should be legal.

As I said, I can't see the difference between renting a room to a relative or a house - and if every child living at home claimed housing benefit, we could waste more money. I also believe that this is the easiest way to commit fraud (though please note I am not accusing anyone on here of fraud - just saying tht it would be an easy thing to commit)

[sense4all]

Vic , Vic ,Vic.

You should have just apologised, and left it at that.

I have to say I thought your first answer was a bit of a shocker... but bit my tongue. However the re-state in the apology is a bit much honey!

[joko]

Parents are not obliged to fund their childrens lives when they reach 18.
In the eyes of the law they are classed as independents and treated as such. They are individual separate adults

My dads business is a LANDLORD � if he just gave me a house � he would lose part of his livelihood!
Why should I expect to deprive my father of his income just because he is my dad?

If its not me in there it would be someone else so what difference does it make.
Wherever I live I would have to pay rent so ??? I don�t understand the problem.

If the parents allow an adult child to live in their house then usually they pay board � why should the parents go without because they want to look after their offspring?
What is the difference in paying as a lodger in a strangers house and paying as a lodger to
someone you know, love and trust?

At least here I know my landlord will look after me, not rip me off or ignore repairs etc � and my dad know I am not in any danger from dodgy landlord and neighbours.

It is not illegal it is sensible and right.

[Oneeyedvic]

sense4all - I have apologised for giving incorrect information, but I will not apologise for having a view.

Joko - So if an18 year old living at home is claiming benefit, you think the taxpayer should pay his parents to keep him? You could easily argue that the parents could rent out his room for money so they should be entitled to recompense.

As I said, I don't think this is right, and I can't seem to find a difference between that scenario and your scenario.

[sense4all]

Am I mistaken I thought this was Answer Bank, not Opinion Bank ? love Sense.

[Oneeyedvic]

You will rarely ever find an answer - just an opinion as to what the correct answer is.

I first posted an answer whcih I have subsequantly found out to be incorrect - for which I have apologised. I have also given my opinion on that matter.

I can't see any of your replies answering any question - just giving your opinion.

[themas]

To try to bring this back to facts:

1. Housing Benefit is not payable if rent is paid to a close relative who also lives in the home.

2. Nor is it payable if the Local Authority consider the agreement to be "non-commercial".

In Joko's case I assume the rent he pays is a normal rent for the area. His father is a residential landlord running a business so there should be no problem with benefit being paid.

[joko]

one eyedvic - if you can't see the difference between and 18 year old staying in his bedroom for the next few years, and a 34 year old renting a separate house from an established landlord, then thats your problem.

Can we just have answers to the question now please - no more opnions - particularly regarding the inheritance tax and housing benefit still being payed to my dad if its in my name. Thanks

[sense4all]

Will, wife, no of surviving children, value of estate these are the main points that make a difference to you.You may lose on benefits and your Dad will forgo the income that could be raised from the letting of the property to someone else. Also ,on a bit of a morbid note, do you think your Dad will survive long enough for iht to be negated ( sorry if this upsets you ) but it is relevant.

When my dad died his five children signed our claim away,as he had no will in place, to our mother. I think it is the only time we have all done the same thing. All assets were transfered to my mother, she could have give us a tax free sum at that point ( I do not know if there is a top limit for this amount .) When my mum died they added up the value of all her assets, the main thing being a house in the home counties, all bank amounts, and the house contents (value specified by an independant auction house ) they add it all up and then deduct, any outstanding bills that need to be paid, the estate allowance now 275,000 and charge a tax of forty per cent on the amount left .My husband and I had to get a loan to pay this bill before proceedings could go any further.Then the estate was released and divided as per my mothers will wishes.

So for a very simple example if your dad owned six houses that were worth 50k a piece, his estate would already be over the iht limit.Without getting into convoluted maths 6 x 50 is 300, minus 275 is twenty five the gov. want forty per cent of the difference.that is 25000 x0.4 is ten grand! Does your dad not have an accountant and solicitor for his business stuff that you can trust for advice?

So is the loss of income versus tax due worth it?

This does not allow for the fact that your dad has , made a will,has a wife , or you having siblings so check out b. chicos answer on the other iht q. that was placed.

Hope this helps get the basics outlined for you.

[themas]

If the house is in your name you own it. You cannot then claim housing benefit, which is only for properties that are rented from a landlord. It doesn't matter whether you receive the house as a gift from your father or buy it - either way it is yours and you cannot claim.

[AngryTaxPayer]

Just came across this seven-year-old post and, for the benefit of anyone coming across this conversation in the future: Oneeyedvic, I salute you!

While Joko seems offended at the idea that his (her?) father should pay to support him, he seems quite happy that the taxpayer should support him and his lifestyle choices!

In this post-crash period (2013), there are many working adults who can't afford their own home and have had to make the uncomfortable decision to move in with their parents. This is the only way they can save money in the hope of one day owning a home of their own. They don't have the luxury of moving into their Dad's 'spare house' and pocketing the benefit money.

I would love if I could claim housing benefit to pay to my Dad so that he made enough money to be able to gift me a house! If your Dad owns SIX houses, Joko, either tap him for cash or sort yourself out and pay him the rent out of your own pocket, not the state pocket!

Sorry if this means you have to get a boring wage-slave job and can't continue as a funky freelance in whatever cool profession you've chosen. Life's tough!

And, really, the fact that you are asking whether you would still get housing benefit if you owned the home is revealing: Housing benefit is not a present from the state, it is supposed to be used to pay for the costs of your accommodation, be that rent or mortgage. Owning your own home outright, you would have neither rent nor mortgage to pay, so obviously would not be entitled to housing benefit. From your question, I'd guess that you aren't, in fact, paying anything to your father but rather using the money to supplement your income.

This country is sooooo broken :-(