Giving house to step-daughter?

What a lovely idea.

Would they want the actual house or the money from selling it? ( and get one of their choosing?)

Ignore your parents and their implied ‘shes not your, blood, daughter’ talk. Tell them that repeating this publicly will cause serious problems/rifts/hurt.

I would keep it for my retirement. Things can ho wrong even with a good pension. But you can give it to her in your will.

You can't take money or property with you when you die, spent it and gift it, enjoy it being put to good use.

It’s quite interesting how many people clearly sort-of agree with the parents with the suggestion that the house be split between the three.

Nobody would suggest that if the OP had adopted her SD. Yet her saying “To me my step-daughter is my own” clearly isn’t enough for some.

Your parents sound awful to be honest, and I assume your DH isn’t much impressed with their attitude towards his DD. I would do what you’re suggesting in a heartbeat.
Don’t forget though that when you do sell your house you will have to pay CGT, and if you die within 7 years of gifting your SDD the proceeds, it could be subject to IHT.

Personally I'd hang on to it as you never know what happens in the future, and you may need that home/money. I would leave it to the three of them, to be split equally.

I think you should use the rental income or sell the house to enjoy your life! Go on some lovely holidays and treat yourself. Your step daughter seems fine for money at the moment and she'll inherit from her father. Maybe you could mention in your Will that you'd like the house that you own to be split equally three ways between your niece, nephew and step daughter.

They are ignorant - they’re ignorant to their own daughter’s feelings toward her step daughter, and arrogant to boot in thinking their opinion of her relationship should sway her into doing what they want.

Why not sell the house and split it three ways between dsd, niece and nephew now. ?

Or give it to your dad and leave a portion of your hour house to niece and nephew.

I'd be dubious about telling your parents anymore as they could tell your sister and cause a feud.

I would sell and split the funds 3 ways - give her a third for deposit and put rest in some sort of trust for neice and nephew

I agree they want it for their grandchildren but they are ignorant in the fact they clearly don’t understand the dynamics of OP’s relationship with her stepdaughter.

“To me my step-daughter is my own”

When it comes to her this is all that matters. To you she’s your child. You wouldn’t be leaving your house to your niece and nephew if she was biologically yours (except iIn difficult circumstances) so don’t be pressurised by your parents just because they don’t get it.

If you’re sure of your retirement funds and future then treat your daughter however you want to.

DS1 is technically my DSS and I’ll be damned if anyone ever got to tell me I shouldn’t treat him like my own (very similar circumstances).

It's definitely a lovely thing to do

But I think you're being a bit naive. A lot could happen to mean you need the money to take care of yourself. Does it have to be right now?

You sound lovely. Your plan sounds lovely. But....if things come too easy do we really value them? Most people can't buy a house in London at 27. You start with a flat to get on the market and then build your pot.

150k is a lot of money to have spent already. 50k on 3 years at uni? 30k on a wedding? 80k left for a deposit? How much more do they need? What has he bought to the table? What happens if they divorce - has all her money then got to be split?

Someone up thread said give her the house so she can have the income. That's a nice idea but as you know owning 2 properties has some implications. Not least the mortgage company if they still do good deals for first time buyers she won't be eligible. You gifting her the income sounds like a good solution. She can save it for a deposit.

Op I don't think you should be giving away your security and assets just yet.
Too many things could go wrong, divorce, illness, injury, widowed etc

If having a rental is becoming more hassle than it's worth I'd sell up and invest in lifetime ISA which you can do for pensions.

I do agree you should change your Will. Your DSD is probably closer to you than neice / nephew.

I think other poster has got it right your parents have blabbed about what is in your will. Would they think differently if you had adopted DD or another child?

If she is basically your daughter then treat her like she is, it doesn’t matter what anyone else thinks. I do get where the grandparents are coming from, they are just thinking about their grandkids so don’t take it to heart.

Having said that I would hang on to it for a while longer, you don’t know if you and your DH may need that for care costs etc. You can leave the whole thing to her in your will anyway. She sounds like she’s actually doing very well and tbh it’s normal to have a little struggle in your youth. It’s a lovely idea though.

Think I'd be more worried about what the future holds for yourself, care costs etc. we are not on a particularly good trajectory at the moment!

I think a £50k gift would be extremely generous if you decide to sell and then you still have some to gift your niece and nephew when you choose to (or not if you need the money yourself).

I think it would be quite a foolish thing to do. SD and her DH don’t exactly sound like they’re struggling - she’s already had a large lump sum to set herself up in life, albeit in sad circumstances. If they can’t afford to buy a house in London then they’ll just have to buy outside and commute in. There are loads of options available to them.

while this would make you appear generous and prove to your SD that you love her - that doesn’t seem a good reason to deprive yourself of a valuable asset that you will probably need in the future.

My Stepdad's parents saw us entirely as their grandchildren even though we were not related by blood, and they had many other blood related grandchildren.

Because obviously they would want the inheritance for their own.
They aren’t ignorant, they are just wanting what is best for their grandchildren.
That doesn’t mean they get it though.

She is your daughter. Yes of course you would give it to get. Your parents are unreasonable

I don’t think I would give away the house yet, but I also don’t see why niece and nephew necessarily deserve the same inheritance as DSD?

OP says DSD ‘is my own’. Niece and nephew are not her own, and they have two parents, they should look to inherit from their own parents.

OP could give niece and nephew a smaller cash gift, like £10-50k each.

Why not give her the rental income rather than burning your bridges by selling the house.
The fact that you love your SD and see her purely as your own, is a lovely thing to read, particularly on MN, where SCs are spawns of the devil and to be excluded from everything. However, always make sure you have enough 'exit money' and that you future-proof your own life before doing it for others. I'd apply this to all situations, not just one such as yours.
Yes, it is hard to get on propert ladder; giving them the rent would help without spoiling or putting yourself in a potential financial hole

Lots of us are out there who lost their mothers {through death} far younger than 7 and received nothing.
This woman sounds in a very good position financially without OP's input, but it's up to her.
@IsMadl Wouldn't there be capital gains tax if you gifted that amount?

We could have if we'd had a registry office wedding and reception at a community hall and invited hardly any guests but we could afford it and I don't see that there was anything wrong with it either. We had a brilliant day and we still managed to buy a house.

I just don't see why people are wanging on about the finances, if OP wants to give her stepdaughter money and is doing that of her own free will why shouldn't she? Her question wasn't "is my stepdaughter an irresponsible spender". When my granddad died he left all his grandchildren 8k each and explicitly told us to spend at least some of it on something "fun".