As a parent you might be tempted to sign your property over to your children, but gifting your home is far from straightforward and you should be aware of the following:
- Once you sign your property over, it will be counted as your children’s assets. You will no longer be the legal owner and if you plan to continue living in the property, and then fall out with your children, you could be evicted!
- Your children might want to rent or sell the property, or live their themselves. You will have no control over this & they don’t need your permission.
- If your children divorce, your property would be part of their divorce settlement and your son or daughter’s ex-spouse would have a legitimate claim on their estate which would include your property.
- If your child had an issue with bankruptcy, your property could potentially claimed by creditors.
- Your child could be liable for capital gains tax if they don’t live in the property when its signed over to them and it increases in value when they come to sell it.
- If you transfer your property to avoid care home fees, this could be considered as ‘ deliberate deprivation of assets’ by the local authority and could still be included in the test for funding.
- If you outlive your children, your property will be passed to their beneficiaries.
- The list goes on …………………………………………..