Signing over property

[Dave&Sue]

My mother-in-law is having problems selling her bungalow and is desparate to move. One option we have come up with is for us to buy her a flat and for her to sign over the bungalow to us, leaving us with the problem of selling. Can this be done, and what are the legal/tax implications?

[lady_p_gold]

I am sure a more comprehensive answer will be forthcoming about the full tax implications but I could see that being a problematic transaction.  When you say 'sign over' do you actually mean transfer the property into your names.  In which case it would be a 'gain' on your part.  And if you were the only beneficiaries of her will fair enough, but what if she had others that were going to benefit from the house .. all that would have to be sorted.  The bit I was going to answer was ... has she though of auctioning her property ???  It might save a lot of hassle all round. 

[Loosehead]

Why mess about, the main reason properyy doesn't sell is that it's over priced, drop the price, QED

[Mrs_Pegasus]

The property market is slowing considerably and the chances are she will like loosehead has said need to reconsider the pricing of the property.  The upside to this is that anything else she is looking to buy i.e. the flat will also have dropped in price and therefore she isnt losing out.

By signing the house over to you and then you buying the flat for her is very complicated and in effect leaves her with nothing i.e. the flat will be in your name as will the morgage and you will also own her bungalow. 

Why not simply buy the flat for her and when she sells the bungalow she can pay off the mortgage or settle the debt with you?

[spudqueen]

Your mother-in-law would need some sort of protection if she was living in a house you owned. You can go to a solicitors and get a legal document drawn up giving her the right to live in the house for as long as she wants. Mr Spudqueens Cousin/Aunt have done this.

[stream]

You're best bet is looking at www.advice100.co.uk i watched their inheritance tax presentation because i wanted to put my mothers flat in my name, i learnt alot and decided to do it i the end.