Moving In With My Son

[genie123]

As we are getting older and have some health problems, we would like to sell our house and use the proceeds to help our son buy a house for his family and my husband and I to share. Are there any tax implications in doing this?

[fiction-factory]

If son doesn't already have a house then I can't see any tax implications other than possible Inheritance Tax at some future date. IWould you buyit in your name or his

[Gill55]

If I were you I would get proper advice from a solicitor as there could be implications with inheritance tax, better to be safe than sorry!

[gness]

Do take advice about any future care/nursing home fees too...x

[genie123]

Son does already have a house which he would be selling as well. I did wonder about inheritance tax. I think the house would be in his name. Solicitors advice seems to be a good idea. Thanks.

[genie123]

Another good point about care costs.

[Buenchico]

Since you'll be selling your main home (rather than a second home), there's no Capital Gains Tax to pay.

You can give as much money as you like to whomever you like without paying any tax. (There's no such thing as 'gift tax').

With regard to Inheritance Tax, if the gift to your son (to help him buy the house) is only given on the grounds that you'll be allowed to live there as well then it's a 'gift with reservation' and therefore exempted from the rules which would otherwise mean that the money wouldn't count towards the estates of you and your partner when you die after 7 years has passed. So your son wouldn't be any better off with regard to Inheritance Tax than if you'd not made the gift but he'd not be any worse off either. (If, when both you are you partner are longer with us, the value of your combined estates - including any gift with reservation to your son - doesn't exceed £650,000 there's no Inheritance Tax to pay anyway).

So I can't see any potential pitfalls in what you're proposing.

[Guilbert53]

>>>I think the house would be in his name.

Risky, suppose you have a huge argument he could then throw you out.

DONT just put it in his name, get legal advice about puttign in shared names.

[Tilly2]

Can you not buy a property closer to them, perhaps?

[fiction-factory]

It's a huge step movin in with your son's family. I know families who have done it and it has been very difficult for all parties, so it needs very careful thought and everyone needs to be happy with the arrangment

[fiction-factory]

^arrangement

[Buenchico]

It would make most sense to have you, your husband and your son registered as 'joint tenants' of the house.

Then when one of you dies the other two AUTOMATICALLY become joint owners of the property. (Nothing that's written in the will of the deceased person can affect that).

Again, when the second person dies, whoever's left alive (which will probably be your son but might not be) will AUTOMATICALLY own the property outright.

Further, it guards against a family rift which could otherwise leave your son in a position to throw you out of the house.