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Bring a joint owner on my mum's house - could anyone advise please?

(14 Posts)
Hyggeligt Mon 20-Nov-17 10:03:57

Good morning.
My mum is separating from my stepdad, she is in her late 60s and suffers very poor health; it is all a bit horrid sad
She is buying a bungalow for herself and wants to have me as a joint owner on it so it is passed straight to me when she dies, she also has savings etc which will be in her name.
I was wondering if anyone has experience of this, or advice in regards to whether it will affect my tax etc? She will own it outright and it has a value of about £250K, I will not be living there with her; I am her only child and will be the beneficiary of her estate.
Any advice , insight or experience any of you may have would gratefully received, so I can talk her through this before she goes to the solicitors.
Many thanks.

jimijack Mon 20-Nov-17 10:09:30

Watching with interest, in a similar position but my big worry is the property having to be sold to fund care if nursing/rest home is needed. I'm not sure how it all works.

Hyggeligt Mon 20-Nov-17 10:49:57

I know, jimijack, it's really hard to know what to do for the best and I don't want her put in a vulnerable position. Equally, she doesn't want me hit by tax or a sudden bill.
I have tried googling and reading information on it, but it seems complicated. She is seeing a solicitor soon, but I'd like some sort of understanding of the processes involved before she goes.

Andrewofgg Mon 20-Nov-17 10:57:39

Beware the Family Provision Act - the court can override joint ownership in your SF’s favour.

NoSquirrels Mon 20-Nov-17 11:01:21

My mum was joint owner on her late DM's bungalow for this reason. As only child it all passed to her on death anyway, but to avoid inheritance tax the person "gifting" that amount of money (50% of the house value) needs to survive for over 7 years - I believe this would be the same for if care home fees were needed (did not happen in my DGM's instance).

You need good advice from a solicitor, as every case is different and if it is likely that your mum is in poor health now it might not be a good plan...

Hs2Issue Mon 20-Nov-17 11:11:26

7 years doesn't apply in respect of care home fees. It can be seen as deliberately divesting yourself of assets and can still be liable for costs. Also if your a joint owner property would be cconsidered an asset of yours should you divorce etc.

Hs2Issue Mon 20-Nov-17 11:12:16

7 years doesn't apply in respect of care home fees. It can be seen as deliberately divesting yourself of assets and can still be liable for costs. Also if your a joint owner property would be cconsidered an asset of yours should you divorce etc.

Hyggeligt Mon 20-Nov-17 11:13:47

Thank you all - there is a lot to consider here.
I am a divorced single parent and just live with my 13 year old DD at present. I have a partner but we live separately and I doubt we will marry (unless it is a LONG way down the line!)

Allthebestnamesareused Mon 20-Nov-17 11:21:50

do you own a property already? If so you'll pay stamp duty as if it were a second property and also capital gains tax if you eventually sell it without it ever having been your home. Definitely get advice.

It can also be set up as her share being a life interest etc - so again get legal and tax advice.

Auspiciouspanda Mon 20-Nov-17 11:22:05

If she gives away half the value of her property for no money but needs care later in her life that costs more then she has she could be in for some trouble.

Andrewofgg Mon 20-Nov-17 11:23:12

I meant if your DM dies before her OH - especially if they are married and not yet divorced.

Hyggeligt Mon 20-Nov-17 11:24:15

I do own my own home - with a mortgage on it.
Advice is definitely going to be sought!
Thank you

Brahumbug Mon 20-Nov-17 22:10:25

If you and your mum own the property as joint tenants as opposed to tenants in common, then the bungalow will become yours automatically if she dies as her share is extinguished by her death.

Maelstrop Mon 20-Nov-17 22:29:54

You can make yourself tenants in common, but I think you need to be resident at the property.

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