Property Deeds

[davbins]

My parents own their home outright, and are both at an age when they are thinking about eventualities. They would like to add their childrens names to the property deeds of their home, they say to prevent any problems with probate and any chance that the authorities can make a claim upon it in the event of their needing care in the future. Is this possible, and how would one undertake such a thing. Thanks

[jake-the-peg]

I don't know what you mean about problems with probate - certainly transferring a house into your childrens names and continuing to live there will not allow you to dodge Inheritance tax if that's the idea.

This was a dodge from years ago but now if you're "deriving benefit" from an asset like a house then it doesn't work.

There are ways to avoid IHT with trusts but you have to pay a certain amount of tax in setting them up and running them so you need professional advice in doing this.

I'm afraid I don't know about schemes to avoid paying for residential care

[Ethel]

This can be a nightmare. If one of the children become bankrupt, the house could be lost - or at least a substantial charge put on it to pay the debts.

It will also be an asset in a divorce settlement.

Your parents need to take proper advice from a specialist solicitor or accountant.

Bear in mind also that if your parents' are not paying care home fees, then their choice of care may be severely restricted and may not be of their choice.