Protecting my children's future.

[juliacornwal]

My husband and I live in a big house which is mortgage free, and now we're retired we'd like to stay in the house for as long as we can, though if we live into our 80s or 90s that won't be possible because it's much too big.

However it's the house our sons call home and we'd love to find a way we can secure it for them. Are we able to gift it to them, or even sell some of it to them if we require care at a later stage?

Suddenly getting to pension age has made us realise it's time to accept that we 'aint going to live forever', and we must secure what we can for our children and grandchildren, so that the government don't get the biggest share!

[kittywoo]

im not an expert but i belive you can give them the house now as long as you dont die within the next 7 years it would be exempt from inheritance tax. and that way you could have an agreement drawn up that you would remain in the house till you die. then if you require care they could either move in or sell it to provide you with care. hope this helps
but id always advise you to see a fincial advisor they would have more idea as to what is best.
hope this helps!

[WendyS]

I'm not sure the previous response is correct. If you continue to live in your house, even though you have gifted it to your children I'm pretty sure you will still be regarded as having a beneficial interest in it as far as any form of tax relief is concerned, unless you are paying a market rent to your children.
This is too important an issue to get wrong and with potentially large sums of money involved you need to seek the advice of a solicitor to ensure that any actions you take and any trusts which are drawn up are watertight, and the implications clearly understood by all family members.