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Original poster

inheriting a house

5 replies

jetcat · 04/03/2010 16:53

situation is really sad, my ex fil is terminally ill, and his 21 yr old only lost his mother 2 years ago.

When she died, house was paid off and transferred into husbands name. Husband is now ill, and would like to sign house over to son.

Son is currently on jobseekers, but about to go onto carers with IS top up. What would happen if the house was signed over to him, as he would then have capital? (house is worth about £100,000)

OP posts:
ArcticFox · 05/03/2010 11:35

I would question what is the benefit of signing it over to the son at the present time.

The value of the house is well under the threshhold for inheritance tax, so unless dad is sitting on £250k of other assets, there's no IHT benefit of signing it over now. Also, if the father continues to live in the house, it would be considered a "gift with title reservation" and not exempt from IHT anyway. So basically, there's no poit in doing this now if inheritance tax is the only concern.

Original poster
jetcat · 07/03/2010 20:59

thanks arctic. I have no idea why he wants to sign the house over now, i think it is a case of him wanting to sort his affairs out

He does not have any other assets, so i dont think IHT would come in to it, and i did wonder about the gift issue. We are all just muddling through at the moment

OP posts:
CarGirl · 07/03/2010 21:05

Really it sounds as though you need a good solicitor to go to the house and discuss financial options with him. Sounds like the best thing would be for your ex-fil to write a will but a decent solicitor would go through the best financial decisions to achieve what he wants to achieve.

lou031205 · 07/03/2010 22:36

If he was going to inherit the property, and live in it, then it would be exempt from capital consideration for IS purposes. So he could sign it over to the son, the son could move in, and it wouldn't affect his benefit.

So sorry to hear that things are bad for him

Original poster
jetcat · 08/03/2010 10:04

thanks guys. SOn already lives there - it is his family home, though no idea how he is going to cope with it once the inevitable happens.

yes, i am trying to encourage a solicitor's visit so that they can do things properly (it was left too late for his wife, and he is rapidly going downhill as well - in terms of confusion etc).

He is back at hospital today, so hopefully they will be setting things in motion for him, in terms of home care, chairs he can actually sit in without being in too much pain etc

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