gifting assets to children

[Blackpuddin]

My mum is in her late 80s and fit as a fiddle but obviously isn't getting any younger. Looking to the future, she wants to 'do the right thing' by her three sons (me and my two elder brothers). Her only asset is her house. Am I right in thinking it would be advantageous from a taxation perspective for her to 'gift' the house to her sons now? Sorry if this sounds a bit calculating, I'm just not massively interested in seeing all that she's worked for going to HMRC or whoever.

[TFP]

How much is the house worth ?

[Blackpuddin]

No idea really but I guess somewhere between £100k and £150k.

[TFP]

And what other assets does she have ? Because at that level, she doesn't appear likely to have much of an IHT problem.

[Blackpuddin]

None that I'm aware of. If death duties or inheritance tax don't kick in at her level then that's great news and I can stop worrying about it. Feels vaguely wrong to be even thinking about it tbh.

[Magic919]

It wouldn't be a gift if she carried on living there. She would need to start paying rent to the sons. Unless her estate exceeds £325k then don't do it.

[996c2]

How much is the house worth? Inheritance tax is only payable if it's over £325,000.

Where would your mother live if she gifted her children her home? If she continued to live there rent free (gift with strings) HMRC will still want the inheritance tax when she is gone.

[Blackpuddin]

Magic919 said:

It wouldn't be a gift if she carried on living there. She would need to start paying rent to the sons.

Really? How odd.

[Magic919]

Only odd to you. Look up gift with reservation. How easy do you expect the Revenue to make it?

[Blackpuddin]

Magic919 said:

Only odd to you. Look up gift with reservation. How easy do you expect the Revenue to make it?

No sorry, I get what you mean, it's just the idea of mum paying rent to her sons that is odd.
Thanks to all for the advice, there is no way her estate will be worth £325k so I'll file this one away and just look forward to her continuing to live a long and happy life. Her mum was still wearing high heels at age 100 so she's got the genes.

[sumo69]

A small point to note:

In addition to her house and any other assets, any gifts made in the 7 years prior to death may also be included when looking at the £325k nil rate band.

David

[Blackpuddin]

sumo69 said:

A small point to note:

In addition to her house and any other assets, any gifts made in the 7 years prior to death may also be included when looking at the £325k nil rate band.

David

Yes I think we're still clear on that ha ha, thanks David

[paulrockliffe]

The issue you want to consider is what happens to her assets if she has to move into a care home?

[Druid]

paulrockliffe said:

The issue you want to consider is what happens to her assets if she has to move into a care home?

Very good point.

And, believe it or not, a lot of what happens depends on how nicely you and your siblings play together!

[blade7]

If the mother gifts the property and then dies within 7 years who would have the tax liability her estate or the sons ?.

[F458]

Buy a decent number plate and stick it on a car and gift the car to the kids.