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Where Taxpayers and Advisers Meet

Giving our home to our disabled adult child,who Ives with us,and continuing to live in the house.

verizia
Posts:1
Joined:Mon Mar 15, 2021 12:01 pm
Giving our home to our disabled adult child,who Ives with us,and continuing to live in the house.

Postby verizia » Tue Mar 16, 2021 5:53 pm

My husband is 74 and I am 75,both in good health. We want to give the house , which we jointly own outright,to our 36 year old disabled daughter, who lives with us. We would like to continue to live in the house. We are in receipt of State pensions and our daughter receives PIP and employment and support allowance.

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Giving our home to our disabled adult child,who Ives with us,and continuing to live in the house.

Postby bd6759 » Tue Mar 16, 2021 7:26 pm

Lifetime gifts are not often a good idea. What is it you are trying to achieve/avoid by this?

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Giving our home to our disabled adult child,who Ives with us,and continuing to live in the house.

Postby maths » Tue Mar 16, 2021 9:04 pm

It probably is not a good idea; nothing is really achieved.

For inheritance tax purposes the house still remains in your estate even if you give it to your daughter.

It may also be the case that State means tested benefits could be adversely affected.

It is often beneficial for the child for the surviving parent to simply leave the house on discretionary trust for the child's benefit.
No means tested benefits are adversely affected
The nil rate band and residence nil rate bands are available significantly reducing any IHT (possibly to nil) on death.
Uplift in capital gains tax on death.

I understand wanting to ensure your child is provided for on your deaths but lifetime gifting is not the way forward.


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