What would this look like potentially

[hellohellooo]

Hello all

Grew up with next to nothing

Was very lucky in that a family member passed two houses and a farm on to me when they died

I have two young daughters

We live in a small basic house and I somehow managed to pay off our very small mortgage few weeks ago

What would happen if I put everything jointly in their names in terms of what tax would the need to pay on it and when would this be due etc?

They are 8 and 10

Sorry if this seems like a daft question

I have no husband

Do you mean you want to put the houses in your children's names?

You can't do it directly as they're under 18, you'd need a trust. So I'd take the advice of whoever you ask to set this up. I believe there would potentially be capital gains tax for you when you transferred it.

Ah I see ok

So 18 probably wiser then

And capital gains if they then sell it?

Also, please bear in mind that if you put property into their name, they lose out on any first time buyer incentives that may be on offer, for a property they haven’t chosen.

Unless there’s significant emotional attachment, you’d probably be better off financially by selling now and letting the money benefit from 10+ years of compound interest or stock market appreciation in an ISA. Maintaining property is expensive.

Ah I see

So no real benefit of doing it from a young age

I'm so sorry you lost someone but how lovely of them to remember you in their will.

I wouldn't pass anything on to your children yet, OP. I know you'll be taxed but I would rather that and keep control of everything and improve your family home now so your children and you benefit right away. You never know what will happen when your children are older. They could marry young and then divorce, losing a lot of money.

Ah my gosh yes !!!!

Not even thought of that

Great advice all

Say they have it when they are 30'and sell one house

They then pay inheritance tax?

No one can possibly know what the tax situation will be in 20 years time or what the financial situation will be in general. IHT might not even still exist then.

It's great you want to do your best for their future but I really would focus on providing for them in the here and now rather than plan for a completely unknowable set of circumstances.

You might want to look into things like savings plans for them, or something along those lines.

Great

Yes so very true

So really best to wait until they are above 18