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Original poster

Protecting dc s inheritance

52 replies

Travelplease · 28/02/2023 18:26

As identified in earlier thread , we dont have massess of savings .
we own the house and would like to pass this on to dc .
if we get frail and need care homes then the house would have to be sold to fund this .
is there a way that we can sign over house to dc ?
or even sign over a quarter each , so that if we ho in care at least some-of the money can go to dc ?
they are both working hard and we wd like to leave them something .
i feel guilt about asking this as i am aware it would be to help the dc and not lose the house for care fees. However, apart from child benefit neither of us have ever claimed any benefits ever .. which i am using to salve my guilt somewhat / ish .. with this plan .

OP posts:
Springintoabetterlife · 01/03/2023 12:54

Farmageddon · 28/02/2023 18:39

How old are you both OP? I'm not sure how long they can go back in terms of deprivation of assets when you are being assessed, but I think it's around 7 years.
Although I believe if one of you is still living in it, then you won't be forced to sell up (someone may correct me on this).

However I would worry about transferring your property to your children's names while you still need to live in it - what if you had a falling out and they kicked you out or sold it from under you or something, or if one of them got divorced your house could then be considered an asset in their settlement. There are a lot of pitfalls to think about..I would tread carefully to be honest.

There is no limit but at the moment most councils don’t go back more than 7 years.

Michellexxx · 06/03/2023 09:43

Noras · 28/02/2023 19:59

I stand corrected. This is correct for the time being but highly likely to change in the next budget to simplify tax and bring it in line with income tax.

Show quote history

I actually don’t think cgt will change inline with tax codes.
This is one of the few incentives left for growth (more in regards to business) and if they change that, then people will, rightly, move their business elsewhere rather than grow one and half be taken away if they choose to sell/float.

People inheriting homes will also have paid inheritance tax, if it’s a larger state and so for more tax to be added on, at the same rate again, seems excessive.. Most homes have to be sold to pay inheritance tax in the first place.

In regards to OP you could look into a trust but this might only be viable for larger assets.

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