It’s an inheritance one…

[Sailawaytocromer]

My dad has a house. When he dies it will be left to my sister (this is fine - I have had a similar size inheritance already). My sister would like to put the house into her 6 year olds name instead. Is this possible? Something that would have to be done while our father is still alive? Help?

The house would need to be held in a trust until the child is 18 - really you need professional advice how to do this as dad will probably need to change will.

Why would she do that ? Does she have any idea how stupid most 18 years olds are ? He’d probably sell the house to buy a sports car and take his mates to Ibiza .

What does the will say? I think the will needs to state that it needs to be left to her daughter. (Cynical be - to avoid loosing benefits?).

The will clearly says it goes to her and the will can’t be changed now.

@Riverlee you’re not far off!

A will can be amended up to two years after the date of death. Obviously all relevant beneficiaries have to agree (but it sounds like there’s only one beneficiary in this case).

Easier to do when your father is alive but could be done after with a deed of variation after his death. The property would need to be held in trust, a bare trust would be easiest but the child gains control at 18. You could set up a more complicated arrangement so the child gains control when older than 18.

She can do a deed of variation to divert her inheritance to another beneficiary…the 6 year old.

There could be a trust so that the child gets it at 21 say. The money would need to be well managed to make sure it holds its value with inflation.

Why not? Does you dad no longer have capacity (eg due to dementia)?

If it’s a tax dodge or benefits dodge then YABu. Benefits are for those who need them.

Also, it could affect any FTB deals (if they are still around in 12 years time) if your niece/nephew already has house in his/her name , even if it is to circumvent IHT/Benefit rules.

Why does she want to do that?