My mother and father in law are thinking of transferring their house deeds into my husbands and their daughters names (their children), They would continue to live in the house so we could not sell it whilst they were still alive. Me and my husband are in a interlocking IVA and his parents do not know we are in this situation.
Can anyone provide any advice relating to this kind of situation. Is it even possible to do with us being in an IVA? Would the creditors allow it? What checks would be carried out etc. I am not sure how we could get out of it if its something they want to do without coming clean about the IVA.
Any advice would be greatly appreciated
Sorry I am not sure what you mean by the intention for the transfer to frustrate care fees then it would counter the intention. Please can you clarify.
I believe the reason for this is so their children don't have to go through all the hassle of gaining ownership of the property as they don't have a will and want to do this instead.
Hopefully one of the Industry Experts could clarify on Monday --- but my thoughts are that if the transfer deed stipulates that they are unable to sell the house until such time as both parents have passed then it wouldn't be touched by the IVA. However,if the intention for this transfer is to frustrate care fees and the like later on then such a stipulation would, I believe, counter this intention.
To be honest, if the intention is simply to alleviate hassle a correctly drawn will would be far simpler. I have recently acted as Executor in my father's estate and property ownership transfer borders on the automatic !
I agree with Foggy that a will may be much simpler but again ensure that the property is protected in the event that they die during your IVAs.
sosilly wrote:Ok thanks Michael
So it would only if they both passed away before our IVA's finished that the proceeds of the house would need to be paid into the IVA
No .... once you are on the title deeds you are one of the owners and creditors could go after your share by equity release or extension of the IVA. The tenancy for life clause would have no real effect, unless the property was put into trust and, so, owned by the trust, not you.
As Michael said, the solicitor might check, also HMRC, who handle the stamping of the transfer will add you to their database as a homeowner which can flag you up for anything tax related -- in the longer term, capital gains if the house is sold to pay for care, for instance, or, ultimately, inheritance tax and probate.
Michael when you say the solicitor handling the transaction may do a search, do you mean the solicitor who my husbands parents get to handle the transfer of deeds over to my husbands and his sisters names? No solicitor is required at equity release time is there?
Foggy you mention HMRC which can flag my husband up for anything tax related, what effect would this have on the IVA and I wondered if you would mind explaining what you mean by capital gains if the house is sold to pay for care which it wouldn't do if it wasn't in my husbands parents name any longer would it
and what effect in transferring the names over would this have on inheritance tax and probate. Sorry for all the questions this is just an area out of my knowledge so just want to be clear.
As I have previously said my husbands parents don't know about the situation we are in and it would be embarrassing for us to have to explain to them the mess we got ourselves into so would still like to keep this just between ourselves.
I agree a will would be a much simpler process all round which we are going to speak to them about.
If you go down the will route ask the solicitor to include an insolvency clause .. which basically (and simply put) puts any inheritance in trust and out of the reach of any beneficiary whilst he / she is insolvent. So as they cannot inherit while in an IVA, the IVA has no call on it and the trust releases it when the insolvent comes out of the IVA.
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