Gift small house to my 3 children.

[gregs1959]

Hello I would welcome your advice. I plan to gift a small house to my 3 children. Three questions if I may :-

1) would I be correct saying as it’s a gift there would be no stamp duty to pay.

2) Two of my children already own their own homes. However my youngest is still at university. Would this gift penalise him in the future when he comes to buy his own house ?

3) If this is the case what would you do ? ( leave him out for time being until he buys his own and then let the other kids gift him his share ?)

The market value of the house is only around £65,000- £70,000.

For the future I would like to move a few more over to them. Would putting them (I have several) in a perpetual trust in the future be the way forward ? However this will lead to tax liabilities. ( 50% not sure ). The benefits of this way to me are :- it safe guards the property’s from divorce etc in the future and leave my legacy within the family

Decided on this occasion to just gift outright and advised they could then re mortgage and buy another 2 houses. Gives them a start for the future.

Not ready just yet to move more over as still relatively young and enjoying the income, not near retirement age just yet.

Thank you all for your help

Mark

[johnfm]

gregs1959 said:

Hello I would welcome your advice. I plan to gift a small house to my 3 children. Three questions if I may :-

1) would I be correct saying as it’s a gift there would be no stamp duty to pay.

2) Two of my children already own their own homes. However my youngest is still at university. Would this gift penalise him in the future when he comes to buy his own house ?

3) If this is the case what would you do ? ( leave him out for time being until he buys his own and then let the other kids gift him his share ?)

The market value of the house is only around £65,000- £70,000.

For the future I would like to move a few more over to them. Would putting them (I have several) in a perpetual trust in the future be the way forward ? However this will lead to tax liabilities. ( 50% not sure ). The benefits of this way to me are :- it safe guards the property’s from divorce etc in the future and leave my legacy within the family

Decided on this occasion to just gift outright and advised they could then re mortgage and buy another 2 houses. Gives them a start for the future.

Not ready just yet to move more over as still relatively young and enjoying the income, not near retirement age just yet.

Thank you all for your help

Mark

My advice is to seek proper advice.

If you have a number of properties and need to do IHT planning you might want to get specialist advice.