It's ours not mine - or is it?

I have a some questions about potential inheritance tax on this gift , I hope someone more knowledgeable can answer please.

Let’s say the Op is gifted the house, it’s worth £300,000. She then puts it in joint names with her partner , 50:50.

In two years time, the relative who gifted the house dies and their estate is liable for inheritance tax .

Am I correct in thinking that the Op is liable for the £42, 800 inheritance tax as it’s a failed PET? But her parther wouldn’t have to pay anything.

And that even if they have already separated and sold the house ( as they would need to, unless the Op has £150k in the bank to buy him out ), the Op will still have to pay that £42,800 tax herself .

So her ex would have £150,000 and she would have £107,200.

Another scenario might be if the relative goes into a care home and the gift of the previously rented property is seen as deprivation of assets. Does that affect the recipient of the gift or the one who gave the gift ?

Correct

many posters have said they’d be extremely unhappy in his position and would consider the relationship. I would too if I’m honest.

op can keep the house but she should bear in mind that her partner may well feel that is unfair and it may lead to the end of the relationship. I think he’d have a point.

It should be spilt 50/50!

That's quite nasty of you not spilt it with him when he been paying all the same costs. If you're not going to split it, then you 100% owe him back all the repair cost he's paid.
It's disgustingly selfish to have been expecting him to spilt costs on "our" house for repairs and maintenance, but when it comes to ownership it's "your" house.
Has he also been paying more towards this house than you?

But she is sharing it with him, he will live it in rent free from now on. He has also had the benefit of presumably cheap rent and security whilst renting. Not everyone gets to stay in the same rental for 15 years. You often have to move on.

They will both benefit from not paying rent.

Are you happy for all the children to inherit equally - his and yours? That's relevant. If so, just get married much better solution.

Your family member is gifting you the property keep it in your name as partner and yourself are not married you must keep records from when house transfers to you of any payment your partner make’s towards the house I would presume that they will try to stake a claim against the property if you separated. I also wouldn’t be surprised if they propose within a few years as that’s the easiest way to force you to share your asset. You need to think with your head on this.

You could accept the gift of the house and keep it in your name but acknowledge that DP is at a disadvantage here and look for way to even things out. Eg, once you stop paying rent you should have more disposable income between you and some of this could go into paying the mortgage on a small property in his name, which would be his if you split up.

It’s your house. You’re not married.

I wouldn’t get married now! I would accept the gift and continue to live there with DP.

Relative has gifted to you, not him.

All of this. It's not just about today.

How would OP's parents (or whoever) feel if the fruits of their lifetime labour end up owned by her ex-boyfriend's girlfriend, wife, widow or kids?

How would her kids feel to see a large chunk of their 'generational wealth' belonging to near-strangers if the relationship breaks up or if OP, god forbid, should die?

If she relieves him from the obligation to pay future housing costs, he should be able to purchase a separate property as an investment for his family.

Fifteen years? I'd go with a shared deed. I mean, if you've shared everything else for fifteen years, including childcare, why would you not share this?

A thought experiment.

Imagine that the week after you acquired the house and kept its ownership to yourself, he inherited five million pounds. Would you think well of him if he said, "This is my five million. Nothing to do with you. I shall be buying a couple of flats to rent out, and a flash car on which you won't be insured. Now we're both secure. Excellent. Your round, isn't it?"

You need to talk to the relative. They are gifting the house to you clearly as want to put it in your name. They haven’t said it’s for both of you. You also need to consider inheritance at some point and the fact that you don’t have shared children. I wouldn’t. Protect yourself and your DC.

@Sugargliderwombat I didn’t say they should get nothing!

It’s very difficult with no background of what they earn, what the house is worth etc.

If the house is worth the same as 2 x 2 beds then 50:50 may be fair and feasible.

how many children each?
Future inheritance could be tricky if its your family and he has, say 3 kids and you have 1, as the assumption would be that your family's gift gets split 4 ways with their only grandchild getting 1/4, rather than the whole house.
Or, god forbid, something happened to you and your partner remarried, and then your family's gift gets given to a second wife.
Perhaps you need to have these conversations with the family member and see where they would like this to go down the line, so that if you do put both names on the deeds, you protect your child/ren

But they don't have their own home because of her.... So he didn't mind they couldn't get a home because of her bad debt, paid equal rent, then he ends up with nothing and she has a mortgage free house. I would absolutely be so bitter I couldn't live there 😭🤣

Ooooof so basically... You may has well have owned and been charging him rent. Hmm. There's no right answer I cna see why he'd be pissed.

Op could you have afforded the rent on your own?

Has he ever had a mortgage/owned a house?

They could have lived in his house and OP paid him rent.

He could have purchased a property and rented it out, with the income covering the mortgage, leaving him able to pay rent to the landlord he's had in common with the OP.

And frankly, not everyone is skint. I could easily afford rent and a mortgage, and I'm only one person. They are two people with two incomes. And as they have been together 15 years, it's likely they are at least in their late 30s and approaching peak earning power.

He was paying rent in their shared home. Most people can’t pay rent and a mortgage out of their wages

He could have thought about himself & his kids & bought a place.

He was paying rent in their shared home. Most people can’t pay rent and a mortgage out of their wages

I don't think the impression was tgere but more that who can afford rent, family AND mortgage situation

You're married, the OP is not.

And many people love their "life partner" without feeling the need to hand over all of their assets. A boyfriend (or even husband) is not necessarily one's "future" no matter what they say today. As we've all observed countless times.

The impression I get from OP is that he was paying OPs relative half the rent and sinking money into repairs on the house he was under the impression they were going to be gifted. So he likely couldn’t afford to.

I’m sure if he’d had an every-person’s-in-it-for-themselves-and-fuck-the-person-you-supposedly-love attitude to life he could have protected himself financially from being screwed over, but then he and OP probably wouldn’t be together.

You partner will have to pay gift inheritance on his portion of the gift so that’s a good reason to not have his name on deeds (which I would recommend)

Is this your life partner? I don't get this yours and mine, even before I married my husband (together ten years before marrying) If I'd been gifted a house that he'd paid 50/50 rent for, and you're using the logic of having paid off half the house with your rent, then half of that was his money.

So you both should own the property if this is a man you are looking to spend your life with? Yes if you ever break up he'd stand to get some money etc but otherwise he'd be out on his arse with nothing, older and single and hard to get a mortgage. I assume you guys aren't facing a break up so then if it's for life, he should have some ownership I'd say.

As others have said if it was a gender reversal then the fellow posting would be lynched for leaving his female partner with no security by then essentially being a tenant in their house.