Title Deeds

[pinkjudy45]

Could somebody please tell me, if I put a house (it is rented at the moment) that I own outright into joints names with my only son, what would be the advantages or disadvantages

[fiction-factory]

As joint tenants or as tenants in common?

[pinkjudy45]

Hi fiction-factor, I don’t know which is best? X

[ubasses]

If the house is tenants in common you both own a percentage outright and can bequeath your share to whoever you wish. You can also decide what percentage you want to give to your son. As joint tennancy the house would automatically become the property of the sole survivor on first death.

[ubasses]

It would also be a good idea to read this:
https://www.taxinsider.co.uk/gifting-investment-properties-to-your-children

[woofgang]

https://www.bonnetts.co.uk/2020/01/15/joint-tenants-vs-tenants-in-common-pros-and-cons/

[bednobs]

What is it you want to achieve? Depending on the answer to that may change the way you do it

[pinkjudy45]

Hi bedknobs, I want to make sure my son gets the house after I die, in my will it goes to my husband until he dies so he gets the rental money, I might add that my husband is very bossy and selfish, and the will is not how I want it but if I ask to change it he gets very nasty and moody and his a bit controlling

[AuntPollyGrey]

Advantages:
He will own half your property, therefore this will be taken into account should you need to fund care home services.
It will avoid some potential Inheritance Tax depending on the value of the property and if you live more than 7 years after the gift.
If he becomes joint landlord with you it will lower your income from the rent for your tax purposes.

Disadvantages
If he declares the gift he may have to pay Capital Gains Tax
If he becomes joint landlord he will have to declare the extra income.
If he is married and dies before you his wife will automatically inherit his half of your property unless he Will it or creates a caveat on the Deeds

Personally I would not hesitate to put him on the Deeds, but consult a solicitor as the best way to do it.

https://www.moneyadviceservice.org.uk/en/articles/gifts-and-exemptions-from-inheritance-tax#how-much-can-i-give-to-my-children-and-family-tax-free

[AuntPollyGrey]

pinkjudy, sorry posts crossed. No one can 'boss ' you into making your Will. You can go and change your Will without telling your husband. From what you have said if the rental house is totally in your name, you can put your son onto the deeds without telling your OH. You can even gift the whole house to your Son but I think there would be Tax implications so seeing a Solicitor would be my first port of call.

[Peter Pedant]

// Hi fiction-factor, I don’t know which is best? X//
then it would be better to pay for advice

oh no no I cant do that - spend money to save money blah blah blah etc etc
here goes
Chris will tell you which form it is you fill out - oh TR1 springs to mind, and it is sent off to the Land registry -
fee peanuts

but ,,,, there is a tax and IHT possible consequence
there is in my opinion ( which Naomi says is often dangerous and inappropriate which i deem is a well reasoned caution ) a tax charge as you have transferred an asset wivva deemed value yeah at nil value (*) - There is still tax due - CGT
Knock off 12 grand and pay 28% of the rest
this has to be done now - as the govt is short of moolah - wivvin a few months and NOT at the end of the tax year.
fines and sanctions if not

also you need to know if the round sum (gross) or is it the sum after CGT ( nett ) is a potentially exempt transfer for IHT
I think it is. so you pay a tapering amount ( estate does ) if you die within 7 yrs.

erm and that is about it
good tax advice on AB - what is this ? - have you seen the threads on covid and vaccines

and finally as Mystic Meg might say - - - or not.
I think you need advice

jt or common
common
jt is usually used for spouses for some reason

[Peter Pedant]

well you have two opinions
one of the purest well of truth and one whose advice is well known to be at times inappropriate and dangerous

and your job since we havent a contract for advice
is to sort out which is which

we bofe agree you need er FURTHER ! advice

ohby the way
it is LET at the moment
landlords let - tenants rent

[AuntPollyGrey]

PP //Chris will tell you which form it is you fill out - oh TR1 springs to mind, and it is sent off to the Land registry -
fee peanuts//

and Aunt Polly ( 25 years in Estate Agency) can tell you that to change a Title with a T1 if you are not licenced you have to either provide a multitude of i.d. along with a notarised copy of passports etc. Much easier and cheaper to get it done by a licenced conveyor.

[Peter Pedant]

// No one can 'boss ' you into making your Will.//
yeah I can
you are absolutely crazy to have a house or two and not a will

think dog basked and no dog - (or not)

the ever ready and able Chris does wills but I think he might well turn up his nose at this one and tell you you need a will-writer

[Peter Pedant]

yes my sweet
aunt polly

i was deeming if "I put a " as another crazy plan to convey one's self . see other AB threads. AB is not the domain of the sane

rather than 'if I have put' or "if I get transferred"

[ as the arabs would say - I am heavily into arabic verbs at present - causative and not reflexive ]

and yes I have found licensed conveyors very good value and efficient - and have always paid my CGT !

[Peter Pedant]

(*) oh lapsed back to AB speak to make it fit in with the landscape and make it more - - - courant

[AuntPollyGrey]

We are also assuming the son is over 18.

Regarding the Will, I was referring to the fact the OP advises she does not want her OH to inherit the house but // the will is not how I want it but if I ask to change it he gets very nasty and moody and his a bit controlling//

You (the OP) do not need permission from your OH to change your Will!

[bednobs]

and if you think you'll have trouble changing your will, will he give you trouble changing house ownership?
If by the time you die your son owns the house with you, your will will be disregarded in respect of the house - it'll no longer be yours to leave, it'll be entirlely your sons. If you own it in a percentage with him, only your bit will be distributed as per the will, and therefore your son may be forced to sell

[AuntPollyGrey]

Why would the son be forced to sell what would be his property 100%?

[bednobs]

if him and her own a percentage, only her share will be able to be distributed as per the will. If they can't come to an agreement, the asset would have to be sold?

[AuntPollyGrey]

If the son is given 50% of the house as a Tenant in Common, on the death of his mother he will continue to own 50% but her 50% will be classed as part of her Estate and will be distributed as her Will intended.

The easiest way for this to work for the OP is that she puts her son on the deeds as a joint Tenant.

We don't know, however, if her OH is on the Deeds. This would change everything.