Children’s inheritance

knickas63, it sounds as if the adult children have monetary value in mind, rather than sentiment.
Who would deal with the renting you suggest? The aged mother who wants to reduce her worries, not increase them?
I'm glad she has decided to do what is best for herself, with her own property.

I have heard of cases where a parent has sold or given their house to adult children on the understanding that they will be allowed to remain living there. Some of these 'loving' children have then had the parent evicted.

It's difficult to believe that anyone would treat their parent in this way, but it does happen.

Oh my goodness greengran, what a terrible thing to do, and to their very own parents too. Words fail me.

We know someone that happened to. When his wife was alive they signed their house over to their D and 6 months after she died, the D kicked him out.

Wicked doesn't begin to describe such awful behaviour.

I’ve heard one or two horror stories too. There are some awful children out there.
Thank goodness I’ve never inherited anything so I don’t feel duty bound to leave an inheritance to my children. We probably will, if we’ve done enough investing but no pressure for us.

It's terrible when you think of all the poor families who are dreading Christmas yet all some think about is inheritance.
Makes me weep.

Some good news! My friend’s son has said he will buy the house as he loves the garden and doesn’t want the house to leave the family. She is getting 3 estate agents to value the property and has organised a loan from the bank to pay for the repairs. I am so pleased for her.

That is good news.

She is now viewing apartments, so hopefully will have moved by the Spring

That is good that her son has thought of how to resolve the situation rather than just expect his Mum to hang on unhappily.
I hope it all works out well for them.

I have only one son. I have several properties I rent out as well as my own. When I die there will be a lot of inheritance tax to pay. My sons new partner seemed most concerned about this ....... and encouraged me to give properties to my son now. Arent you worried about inheritance tax she asked. No my dear I replied, because I shan’t have to pay it! Terrible when children are greedily anticipating grabbing parents hard earned cash!

Well well Pythagorus......your son had better get rid of his new partner....she probably saw £ signs .....

Just don't accept any food from her.

So what is the plan for caring for an elderly mother who may reach a point when she cannot fully care for herself? If she is not "allowed" to sell the house – which is, of course, is hers to sell – to pay for her care, are these loving children going to look after her? That is quite clearly not the plan and I think your friend's heart must be breaking.

absent read the responses. It's all sorted now.

Pythagoras
Sons wife has got it wrong, you can only give away your main residence without tax, everything else you pay tax on, rental properties are not counted a trading businesses.
Don't hold it against her, nobody likes paying tax, just be content with correcting her!.
Family politics.

Nothing to stop you giving your main residence away and moving into one of the rentals, you would then need to live 7 yrs to avoid a tax charge. Read the full rules when contemplating this.
That's good planning.

If I give anything except my main residence away I will pay capital gains tax now. I love my house and I am staying here. If I keep the rentals til l I die, capital gains tax dies with me. But inheritance tax will be due. Taxman will get it anyhow one way or another. There has always been rental relief to set against CHT if one sells when still alive. But the new budget said from 2020, no rental relief applied before CGT is calculated. So if one wants to offload rental property do one before April 2019 and one after April 2020.
The other thing about giving money away now is that no e of us know how long we will live and whether we will need all of it for care. Also give it to your children and they have a strong chance of divorce. It’s a tricky business.

I could be wrong but I don’t think that you pay CGT if you give property away, after all you have not achieved a gain, but the property needs to be mortgage free. It is then a potentially exempt transfer for IHT ie totally exempt if you live 7 years, and partially exempt on a sliding scale after 3 years.