Hello and thanks for using Just Answer.
My name is ***** ***** am happy to assist you with your enquiry.
To enable me to answer you fully, could you please confirm-
1. Is the property in your sole name at present?
2. Do you live there on your own?
3. Do your Daughters each own their own properties?
4.Is there a mortgage on the property?
I look forward to hearing from you.
Hallo Al, here are the answers:
1). Yes, bought in 1978
2). I live here with my husband, married more recently.
3). Yes 1 daughter joint owner, 1 sole owner.
4). No mortgage.
Thanks for your reply.
Well, you are able to change the ownership of your property so that you and your Daughters own a specified percentage each- this is done by signing a Land Registry Transfer document, transferring the property into your 3 names, and you each holding the property as what we call "tenants in common" in the percentages specified.
The Transfer is then registered at the Land Registry.
The tax implications for your Daughters are that as and when the property is eventually sold, any profit they make from the date they acquire their share (they are deemed to acquire their respective share at market value) and the date the proeprty is sold, is subject to Capital Gains tax.
There are some disadvantages in doing the transfer, to be honest, not least because you are married- if the Transfer goes ahead, you and your Daughters are the legal owners. If you were to pass first, there would be no guarantee that your Daughters would allow your Husband to remain living there, in that even if you leave your percentage to him, they could demand a sale. Likewise, if either of your Daughters were unfortunate enough to get divorced/dies prematurely/ made bankrupt, their respective share may pass to a third party.
I would therefore suggest that you sit down with a local Solicitor to discuss all the above, and you can then make an informed decision.
I hope this assists and sets out the legal position.
I am very pleased with your service and thank you for your help. My current Will leaves everything equally to my daughters, with the proviso that my husband be allowed to remain in the house as long as it is his main residence. They are very strong and independent women and have an excellent relationship with him; however I note your point about a share 'passing to a third party' and need to think about that. Presumably it would help if they made Wills themselves!
I may have another question shortly but anyway I am grateful to see that this question is not closed and shall certainly request you specifically in future.
Best wishes, Julie.
Thanks for your kind words.
In an ideal world, your Daughters should make a Will, including a proviso that in the event of you passing first, the property is not sold while your husband wishes to remain living there.
If I have answered your question, I would be grateful if you could leave positive feedback.
If you have further questions at a later date, please feel free to request that I answer the same for you.
Hi Al, I've been nagging them about Wills for years so now I can use the Trust as a stick to beat them with. Thanks for your help once again, Julie.
If I have helped, I would be grateful if you could leave positive feedback.