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Original poster

Signing the house over to the children

57 replies

Summerpigeon · 31/07/2024 10:47

We are a married couple very early fifties ,with 4 young adult DC
Two have a diagnosis of autism,and two have probably enough traits to scrape a diagnosis,if they decided to pursue one .
One of the DC ,is very high support needs ,so will need support to live independently.
Currently we are finishing paying our mortgage off,
And trying to think of ways to support our children financially
So ,we were toying with the idea of adding all four children on to the house ,so basically we all own a sixth of it .
I'm just wondering if anyone can think of any negatives I've not already thought of ..I know they could refuse to let us sell up and move
Any thoughts?

OP posts:
Somanylemons · 31/07/2024 10:50

Not an expert so do look into this properly, but I’d imagine it would exempt them from the first time buyers stamp duty discount should they be in a position to buy their own property in the future.

MoreChocPlease · 31/07/2024 10:57

Fraught with difficulties further down the line. As well as the stamp duty issue, what if one of them wants to sell up in future but the others don’t?

Bromptotoo · 31/07/2024 11:03

As PP say fraught with issues.

Proper legal advice needed.

GradGirl · 31/07/2024 11:04

I would look into setting up a living trust and transferring the house into that with the purpose of it (or it’s worth) being to provide accommodation for the six of you for life.

There will be lots of questions to answer/build in incl maintenance of asset, conditions of sale/when and how etc., etc.

You need to have a chat to a decent solicitor.

Original poster
Summerpigeon · 31/07/2024 11:11

Never heard of a living trust ,but thanks will look in to it
Yes I can see some problems
I was thinking more of one of them could move a partner in ,and yes when we are dead ,two will want to sell ,two will want to carry on living in the house .

OP posts:
gardenmusic · 31/07/2024 11:17

And what would happen if one child wanted their 6th before you were ready?
Or a child gets married and divorced, and their partner wants half of their sixth?
Or 'That's my 6th, I will give it away...'
Fraught with problems.

MounjaroUser · 31/07/2024 11:21

Honestly, you would be crazy to do this. Can't you see the problems?

One might move out and want his share.
One might move out, marry, divorce and their ex wants a share
One might be troublesome for everyone so nobody else wants to live there
You might need a bungalow in future - you won't be able to afford one
You might need to go into nursing care - can you imagine the financial mess then?
You and your husband might split up - if one of you wants to move away, what use is 1/6th of a house?
You and your husband might split up - he might remarry then die - his widow will inherit 1/6th of your home.

Come on, OP, those were just off the top of my head. There'll be tons more potential issues.

ByPeachKoala · 31/07/2024 11:35

You have no idea of your own housing needs when you are older,what if one of you became disabled and needed care in a different sort of home. You are far better to downsize well before retirement age and pass smaller amounts of cash on as and when you are able.

yeesh · 31/07/2024 11:40

What would be the benefit? Strange idea to be honest, so many negatives and like you say if one of them gets married and then divorced you may have to sell to buy out the spouse. It could also affect any benefits that your children may be entitled to as adults. Just leave it in your will to them

MrsDoubtfire123 · 31/07/2024 11:40

Don’t do this. Seek legal advice and think about a trust.

Also need to think as one scenario , if one of your children marries , then divorces - the spouse of your child may be entitled to their share of your child’s share - as a marital asset. Then you would have to sell / vacate the home so your child can pay their ex spouse their share of the (YOUR bought and paid for) house.

As well as many other pitfalls, with regards to first time buyer perks not being available. Also if they need to make any benefit claim , their share
of the house could hinder their claim.

Also 6 people owning a house - will end in tears, I’m 99% sure. Sorry!

good luck 🤞🏻

Cantabulous · 31/07/2024 11:45

If you’re in England or Wales, in land law a maximum of four people can own land together and a living trust is not recognised in trust law.

What put this idea in your head? By all means seek to protect your vulnerable adult DC but get expert advice throughout the process.

Sprinkles211 · 31/07/2024 17:32

If one of your children wanted to claim benefits in the future they wouldn't be allowed as they would technically have capital and *own a house. Definitely speak to a financial advisor who is experienced in supporting families with disabled children.

PatChaunceysFruitCake · 31/07/2024 21:46

I was coming on to say the same as @Sprinkles211. Any sort of means assessment process in respect of an individual child would take account of the capital in the house.

vanana · 31/07/2024 21:50

I would caution you that sometimes autistic adults can be unduly influenced by partners, colleagues giving advice.

Also, 6 people owning is too many. There are so many variables and it could cause them to seriously fall out and not talk ever again.

Might you consider selling the house, downsizing and splitting the excess 4 ways to be used as house deposits so they (or some of them) can get on the property ladder?

Winter2020 · 31/07/2024 22:09

As other posters have said one of your children marrying and divorcing would give a partner a claim on some of the equity on your house.

Your house could also be claimed against if an adult child went bankrupt for example through gambling/addiction or setting up a business that failed.

What if you need to move in future, for example you need a bungalow - you won't be able to afford anything with only 2 sixths of the house?

Would owning this chunk of equity stop your children from qualifying for council housing/social housing/ shared ownership / help to buy? (as they already part own a property). I would say it could well do. And as others have said they could lose their first time buyer stamp duty exemption and may have to pay additional rate of stamp duty as they would be buying a second property. (I believe you can own a chunk of property worth less than 40k but if this is the case rising prices could affect them).

As the parent of a child that I expect will never be able to live independently I understand your anxiety about helping your children with their futures but I'm not sure this is the solution.

It sounds like some of your children will be able to work/live independently?

WulyJmpr · 31/07/2024 22:47

I imagine CGT would be payable too but seek financial advice obviously.

Greytulips · 31/07/2024 22:52

I think of one child needs long term care then it may hinder their claim to get assisted living. They would be in no man’s land.

Who would you leave you 6th two?

You need to set up a test outlying all scenarios on who and when they could take their share with express instructions on how and when the house should be sold and who gets what.

GreatScruff · 31/07/2024 22:52

One of my parents friends did this and then one of the sons took the parents to court for his quarter of the house when he was 21and they has to sell the house.

Obviously there was a mass fall out. The parents never recovered their place on the property ladder and the relationships never recovered.

carrotsfortabbits · 31/07/2024 22:54

They would have to pay capital gains when they sell, calculated from when YOU bought it. This could be more then inheritance tax. You need s financial expert.

GreatScruff · 31/07/2024 22:55

If they need support to live independently then how is owning a sixth of a house going to help with that?

Who is going to look after them when you and your husband can't?

clearmoon · 31/07/2024 22:58

do not do this - recipe for disaster. apart from anything else, your children will totally lose their status as first time buyers and forfeit any benefits or assistance in getting on to t he property ladder themselves. This happened to a friend of mine, it was catastrophic

ByCupidStunt · 31/07/2024 23:01

I can't think of a single positive reason why anyone would do this.

QuillBill · 01/08/2024 14:20

I can't see any advantages to doing this.

How will it help @Summerpigeon ?

DancingPhantomsOnTheTerrace · 01/08/2024 14:30

I'm just wondering if anyone can think of any negatives I've not already thought of

To be honest I can't really think of any positives.

Original poster
Summerpigeon · 01/08/2024 15:12

vanana · 31/07/2024 21:50

I would caution you that sometimes autistic adults can be unduly influenced by partners, colleagues giving advice.

Also, 6 people owning is too many. There are so many variables and it could cause them to seriously fall out and not talk ever again.

Might you consider selling the house, downsizing and splitting the excess 4 ways to be used as house deposits so they (or some of them) can get on the property ladder?

One definitely can't live independently,and almost definitely can't .
Just trying to think of ways to give them security

OP posts: