These notes are intended to provide you with some
initial guidance following the indication you have given
that you wish to consider a Deed of Gift of either part
or the whole of your property.
They are by no means comprehensive and we must advise
you that it will almost certainly be necessary for us
to discuss your personal circumstances and the direct
implications with you. They are, however, provided to
give you some initial background information with regard
to the potential advantages and disadvantages of proceeding
with a Deed of Gift.
Ownership
The entering into a Deed of Gift legally transfers
the ownership of the property from you to the individual
or individuals nominated by you. Once the documentation
has been executed you have, technically, no direct legal
interest in the property unless you transfer ownership
to yourself and others to share.
Please do, however, see the section below entitled
"Occupation".
We appreciate that in many, if not virtually all situations,
the gift is likely to be made to family members and
you will probably therefore imagine that there will
be no future difficulties. We would, however, advise
you that no specific guarantees can be given and, subject
to our comments below, we do like to ensure that you
have considered the possible future circumstances of
yourself and your family before you proceed.
Occupation
You will, if you intend to proceed with the Deed of
Gift to transfer the whole of the property, need to
seriously consider your rights of occupation. Many clients
believe that on the basis the gift is being made to
children or family members they will be "quite
safe" for the future and do not need any particular
agreements or guarantees. We must, however, advise you
to seriously consider entering into a formal written
Agreement with regard to your rights of occupation for
the future. That would most certainly ensure that many
of the difficulties or misunderstandings which could
arise, are covered. A simple Agreement can give you
complete peace of mind with regard to your occupation
of your home for the future.
Expenditure
Clients often ask us what happens with regard to the
expenditure upon the property following the completion
of a Deed of Gift. We generally advise them that, subject
to agreement between the parties, the payments can be
made either by you or the new owners. It is important
that you consider the position with regard to the insurance,
maintenance and service expenditure and we would be
pleased to discuss these particular aspects with you,
in detail if necessary and then incorporate your decision
into the Agreement referred to above.
Tax Implications
Many clients often ask; what are the potential tax
implications of entering into a Deed of Gift.
We would, in any event, ensure before you proceed that
you are fully aware of the position - we would need
to ascertain from you the value of your assets and whether
or not, subject to the value of the property in question,
there would be any potential Inheritance Tax liability
upon your death.
Please do not hesitate to call us in complete confidence
if you wish to discuss any matters relating to this
area.
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