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Can I give my house to my children before I die?

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There are various points to consider before gifting your property to someone else, including but not limited to: deliberate deprivation, gift with a reservation of benefit and potentially exempt transfers.

What is Deliberate Deprivation of Assets?

This is when you do something to intentionally decrease the value of your assets to reduce how much you are required to pay towards your care home fees or support in the future. This is relevant if you intend to transfer your property which is the main asset you hold in your name, and you have a significantly lower amount of money to fund your care or support as and when it is required.

If you are fit and well and cannot see yourself requiring any future care or support, then transferring your assets (including your property) at such a time would not necessarily be considered a deliberate deprivation.

The local authority would consider all relevant factors before making any decisions in relation to this, and our expert solicitors at Johnson Astills understand that this can be a complicated matter, and we would be pleased to advise you if transferring property is something that you are considering doing.  

What is a Gift with Reservation of Benefit (GROB)?

This occurs when an asset is given to someone else, but you continue to benefit from the property. For example, if you transfer your property to someone, but you still receive the income on the property or you continue to live there, then this would be considered as a GROB. If this happens when you die, then the value of the property would be included in any Inheritance Tax (IHT) calculation upon your death.

What is a Potentially Exempt Transfer (PET)?

A PET is a gift of unlimited value which becomes exempt from IHT if you survive 7 years after making the gift. If you die within the 7 years, the value of the gift would be considered when assessing your inheritance tax position upon your death, although taper relief may be available. Should you wish to discuss this further, our solicitors at Johnson Astills would be pleased to assist you.

Should you wish to discuss any concerns relating to transferring your property to your children during your lifetime, and have any concerns or queries, then please feel free to call our expert solicitors at Johnson Astills who would be pleased to assist you with this. You can call us at our office in Leicester or our office in Loughborough. Alternatively, you may prefer to email us at legal@johnsonastills.com or fill in our enquiry form.