Children’s inheritance

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.

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.

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.

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.

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

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.

Just don't accept any food from her.

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

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!

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.

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

That is good news.

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.

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.

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.

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.

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

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.

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 think if the house hadn't been passed down through the family it would be different. I can see both sides on this one. If they really are desperate to keep the house - could it not be rented out to cover the costs of the sheltered accomodation?

Thanks for letting us know RamblingRosieif her children aren't very happy with her decision, you can show them this thread and us GN's can take the blame.

Seriously though, I hope her children, now the decision has been made, are supportive.

I've already told DS I've every intention of living to be at least 100 Parsley, should have seen the look on his little face.

A good point. It would serve them right if the parents lived to 100. ?

That made me chuckle Parsley, with more and more people living into their 90s and 100s, the parents may very well NOT be dead by then, and additionally they may be in care homes and require the money for the fees. So the young people you know may well be disappointed!
Isn’t this sad though, that there are people out there who are looking forward to the death of their parents so they can get their hands on the money. My mother celebrated her 91st birthday recently, my dear old Dad lived to almost 90. My husband’s parents are both 91. Long may it continue. I do worry a bit about the prospect of looking after someone of 100 with myself and husband in our 70s by then, but since it’s some time off, and may never happen, I’ll cross that bridge when it arises. I love my Mum, I do not regard her as a cash cow. She is my dearly loved mother.

My thoughts exactly, MOnica.

If my children said that to me I would immediately rewrite my will and leave my assets to my grandchildren or take out equity release and spend it.

The money could also be used up in care home fees? They cannot guarantee that some time in the future their parents assets may not be used up by all kinds of other events.