Advice needed.

[stefan1968]

Hi folks, need a little advice.

My ex-wife lives in a property that I pay the mortgage on with my two children. My daughter is disabled and the house has been fitted out/equipped for her needs. Currently only my name is on the mortgage. As the likelihood of being able to transfer the mortgage into her name is extremely low (she wouldn't meet the lending criteria) I want to give her the piece of mind that the house actually belongs to her once the mortgage is paid, my most important priority is that the house remains with her whilst she looks after out disabled daughter.

Is there any legal document i can get drawn up that basically says the house will belong to her once the mortgage is paid, or I drop dead (Got life insurance cover) As she can't get her name on the mortgage she feels like the house is not truly hers and she wants to make further improvements/changes for my daughters needs as she grows older, but is understandably reluctant whilst all the property documents have my name on.

I'm trying to give her some peace of mind that the house will be hers no matter what.

Any advice, thoughts greatly appreciated.

Stefan.

[Kati]

Re: Advice needed.

I suppose you could 'gift' it to her ... http://www.hmrc.gov.uk/inheritanceta...o-children.htm

You can give your home to your children - or someone else - at any time, even while you're still living in it. However, if your estate (including your home) is worth more than the Inheritance Tax threshold (£325,000 in 2014 to 15), there may be tax implications.

For Inheritance Tax purposes, giving your home away is treated as making a gift. The rules about passing on property are complicated, so it's a good idea to seek legal advice.There are 2 things about gifts to be aware of when passing on property:

• 7-year rule. You can make an outright gift of your home to someone, no matter what it's worth, and it will be exempt from Inheritance Tax if you live for 7 years after making the gift. This is known as a Potentially Exempt Transfer.
• Gifts that you continue to benefit from. If you give your home to your children with conditions attached to it, or if you continue to benefit from the home yourself, this is known as a 'gift with reservation of benefit' and the gift won't be exempt from Inheritance Tax, even if you live for 7 years afterwards.

Have a look at the link - there is lots of information on there :tinysmile_grin_t:

I would suggest that, once you've decided how you are going to proceed, you have a word with a solicitor :tinysmile_twink_t2: - the National Pro Bono is a good place to start (http://www.nationalprobonocentre.org.uk)

Kati x