There are various reasons why a property might be transferred to someone else either as a gift or for money including
Under the terms of a Will when someone has died
A financial settlement on divorce or separation
A couple might want to transfer a property into joint names
Under the terms of a Trust, on occasions to save Inheritance Tax
You should always seek expert advice from a qualified financial adviser whatever the reason may be. There are a number of misconceptions regarding Gift transactions and may result in unintended consequences regardless of the good intentions.
For instance it is wrongly believed that if you give property to your child and survive for 7 years that will save Inheritance Tax. However, if you continue to live in the property, the value of your home will still be included in your estate regardless of how long you survive, unless you start paying a market rent for your occupation.
Also the local authority has the power to overturn any gifts made deliberately to avoid paying care fees if you decide to give your property away to avoid paying care home fees. The local authority can look back any number of years. Again it is wrongly believed that any gifts made more than 7 years ago are safe, but this is not the case. The '7-year rule' only applies to gifts for Inheritance Tax purposes.
Whatever the circumstances if you are thinking about a property gift or transfer please contact one of our offices closest to you to speak to one of our conveyancing specialist. Your interests are at the core of our service and we will give you the right advice if it is the right thing to do under circumstances without any unintended consequences.
We provide a nationwide consultation option anywhere in the UK if you prefer. However, most transactions do not require this and we will be happy to do all the work via phone, email and internet. You can be assured that providing a great service is at the heart of what we do and whichever way our clients prefer to do business with us.