My father-in-law wants to gift house rather than have government take it in case of having to go into care, an

Answer 1

If youre in UK, any financial gifts like this are looked into upon death and anything given within the last 7 years is supposed to be taxable. Having said this, nobody actually asks you. I know your father is still alive and long may he be so but you really need to think about when he's not. I didn't and it cost quite a few thousand pounds. Why not get the deeds put in your name or even a few bills in your name so it looks like you live there and the house can't be taken away??

Answer 2

Take only professional advice on this, (see an Independent Financial Advisor or solicitor) you are in dangerous water. Under inheritance tax if you father law dies within 7 years you could pay 40% tax on the value of that property. Gifts over a certain amount become taxable as income.

Answer 3

In the UK, all gifts are taxable for a further 7 years should the giver die during that period.

If your father were to "give" you his house, then he would need to demonstrate that he could afford to do so without significantly damaging his standard of living.

You might find that the best dodge here is for him to sell you his house for a nominal fee, say £1 and then for you to rent it back to him, again at a nominal fee say £1 a month. It could still be considered a "gift" for death duties but it's likely that for the purposes of avoiding care bills that this arrangement might stand up a little better in court.

Your best bet is not to talk to a solicitor but to an independent financial advisor, who will be able to give you the appropriate advice for this.

Answer 4

Definitely need to check the laws on this one. My grandmother went through a similar situation when my grandfather got sick. The nursing home said Medicare would look over all their transactions for the last three years, looking for things like this before approving anything.

Also, the gift tax is pretty steep, so you need to check the IRS rules.

Answer 5

You should talk to an attorney, but I think you would be better off, tax wise, to buy it for a minimal amount of money. If he gifts it, you may be liable for a large tax payment. You would do the same process as if you bought any other house, just the amount of money due would be smaller.

Answer 6

Maybe your father-in-law should pay for his own care, rather than sponge of the state just so he can pass on a large asset to his descendents.

Just a thought...

Answer 7

Consult a lawyer. Better to spend a few hundred than to lose a few thousand.

Answer 8

. in most cases it needs to be done at least 3 years before ( in the U.S)

Answer 9

so do it.he has to do it before a certain time before going in tho.

Answer 10

solicitor time!