• My Mother Wishes To Sign Over Her Property To My Sister And I, To Avoid Any Tax, Or The Potential To Incur Costs For Her Care, How Can This Be Done ?

    By Guest on 03rd Oct 2016

    I need to know whom to use how to carry out the transfer without incurring tax, and how to do this.

  • 1 Answers

    By Guest on 04/10/2016

    Assuming there is no mortgage on the property the transfer process is fairly straightforward. You can of course instruct a lawyer but otherwise your mother needs to sign a TR1 in your favour. This will then need to be signed by the two of you and submitted to Land Registry with form AP1 and a form ID1 for each of the three of you. In terms of avoiding Inheritance Tax this is a valid method but there may be some tax to pay if your mother dies within 7 years. As for care home fees, this is more problematic. If your mother has to go in a home and applies for local authority funding because the value of her assets is below the threshold the council will investigate whether she has disposed of any assets in order to qualify for funding. This is known as "Deliberate Deprivation" and if proven they can include the value of the property in her estate or even overturn the transfer. They can order her solicitors and other professional advisors to hand over files for evidence that the transfer was done with the intention of putting your mother in a better position to qualify for funding

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