Hello and thanks for using Just Answer.
I am Al and am happy to assist you with your enquiry.
If a person gives their home to their children with conditions attached to it, or continues to benefit from the home by living in the property, this is known as a 'gift with reservation of benefit'. This means that the gift will still be included as part of their estate for inheritance tax purposes when they die, even if they live for seven years after making the gift.
Therefore, it is not worth doing, if you were wanting to try and save Inheritance tax, but remain living in the Flat.
I hope this assists and sets out the legal position.
I do not intent to live in , so can i have a more detailed answer?
Thanks for your reply.
Apologies for assuming you would be remain living there.
As you will not, provided you survive for a period of 7 years from the date of the gift, the value of the Flat will not be included as an asset of your Estate, when calculating if Inheritance tax is payable.
As regards ***** ***** Flat, you will need to instruct a local Conveyancing Solicitor to preare the Land Registry Transfer document, which transfers the legal ownership to your children.
The Transfer will then need to sent to the Land Registry, together with the Land Registry fee (between £30-£90 depending on the value of the Flat).
The Freeholder who collects the ground rent/service charge will also need to be notified that your children are the new owners. This will be done by the Solicitor.
The Solicitor is likely to charge £350-£500 plus VAT for dealing with the Transfer.
I hope this assists.