We act for clients who are transferring their property to their daughter. There is a mortgage and the daughter will be taking out her own mortgage to redeem the parents mortgage and will be living in the property with her parents - I will be advising of the risks of losing the security of their home.
I am assuming that there is still an element of GWROB and am I right in thinking that this will be the value of the equity on the property?
I still need to talk to them regarding their intentions behind the transfer but if it’s a tax saving I would have thought that retaining some of the equity would mean no GWROB, subject to the amount retained, and furthermore there would be no 7 year rule running on the part transferred as consideration has been given for it and then on death of parents the estates get an additional deduction for IHT for joint ownership?
Rose & Rose