Not for me to live in, just to inherit one day.
Is this anything to do with avoiding care fees?
Why doesnt she just give it to you now?
We do need full background thinking please. Do you have another house?
Nothing to do with avoiding care fees. She is a housing association tenant and retired then sold a property she owned in France and wants to invest. I own no properties in the UK. She thinks if she puts it in my name she won't lose her secure tenancy.
So why doesnt she simply give it to you?
Is ita condition of her tenancy that she doesnt own another house?
We haven't considered that. When you say give it to me, do you mean the money or the house? I wasn't sure if gifts that large were taxable. She hasn't enquired properly but a housing officer said previously that housing association tenants don't have a right to social housing if they can demonstrate enough savings to buy their own property.
She is between a rock and a hard place. If she asks thehousing association, they are likely to say that she has enough money to buyour own house, so no longer qualifies.
If she gives the money away, she has deprived herself ofcapital, which is technically fraudulent on the housing association if that is the criteria.
The idea behind social housing is this it is provided forpeople who do not have enough money to buy a house of their own and therefore,the house that she is in is depriving somebody else of a house who is eligible.
Of course, they may never find out but I cannot tell youto hide it.
She can make any gifts she likes to you and for taxpurposes, once you have had it the seven years, it is free of inheritance tax.It is also free of income tax and capital gains tax liability by you. If herestate, when she dies, is under 325,000, there is no inheritance tax,regardless of when the gift was made.
If the money is used to buy a house, and he is not yourprime residence, you are liable for capital gains tax when you sell it.
Leaving the housing association out of it, if she simplybuys a house for you and put it in your name, you are free to s sell the houseand spend, gamble, waste the money, as you wish. She loses control.
Can I help further?Please bear with me today andover any weekends because I will be online and off-line.Please don't forget to positively rate my answer service (even if it was notwhat you wanted to hear) and I will follow up any further points you raise forfree.If you don't rate it positively, then the site keep your deposit and I get 0 formy time. It is imperative that you give my answer a positive rating. It doesn'tgive me "a pat on the head", "good boy" (like ebay), it is my livelihood!If in ratings you feel that you expected more or it only helped a little,please ask me for further info before rating me negatively otherwise I don'tget paid at all for my time and answer. The thread remains open for us to continue this exchange
Just read tenancy agreement document. Only says you have to use the association property as main residence. No other details.
Many thanks, can now go over our options a little more informed.
Yes. She's a former council tenant, french property not bought until two years into HA tenancy and very small sums involved, barely 20k.