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Ask Clare Your Own Question
Clare
Clare, Solicitor
Category: Property Law
Satisfied Customers: 34583
Experience:  I have been a solicitor in High Street Practise since 1985 with a wide general experience.
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I would like to ask whether it is possible to 'gift' my

Resolved Question:

Hi
I would like to ask whether it is possible to 'gift' my children a share of my property if their remains an outstanding mortgage? Is there a maximum share that I can gift or could I gift them my whole share?Much appreciated !
Kaisar
Submitted: 26 days ago.
Category: Property Law
Expert:  Clare replied 26 days ago.

Thank you for your question

My name is Clare

I shall do my best to help you but I need some further information first

It would be helpful to understand why you wish to do this?

Customer: replied 26 days ago.
Hi ClaireI understand that such a gift will become free of inheritance tax after 7 years?Thanks
Expert:  Clare replied 26 days ago.

Will you be leaving the property or paying full rent for it?

How much is the property worth - and may I ask if you have been widowed or divorced

Customer: replied 26 days ago.
Thanks Clare.This is a second property owned by myself and my wife. It is this property that has a small mortgage debt, and the property that we wish to gift. The property is worth about £1.2M, and the mortgage is £370,000 outstanding.
Expert:  Clare replied 26 days ago.

Just for clarity - you will not be living in the property and it is only your interest in it that you wish to gift to your children?

Customer: replied 26 days ago.
That is correct
Expert:  Clare replied 26 days ago.

Thank you

If you wish to transfer your share then you will need to be released from the mortgage - and replaced by your children (who must be over 18) in order for there to be a transfer of title.

If you cannot do that then you can sign a Declaration of Trust confirming that you hold your share of the property on trust for the children and not for you.

This is best done using a solicitor to ensure that you have all the evidence in place of the Declaration is ever queried

I hope that this is of assistance - please ask if you need further details

Clare and other Property Law Specialists are ready to help you
Customer: replied 25 days ago.
Thanks Clare.
My apologies for the delay in replying.
So if I understand you correctly, I can prepare a Declaration of Trust confirming that I hold my share of the property on trust for my children. If after 7 years I decide to sell this property and pay off the outstanding mortgage, would the remaining balance go to my children without being subject to inheritance tax given that 7 years has lapsed since the signed Declaration of Trust?Appreciated !