Gifting property is becoming an increasingly popular method for the over 55s to make sure their loved ones are financially secure in their own lifetimes.
North West law firm, Stephensons Solicitors LLP, is acting for more and more clients who want to gift their property to family members.
Olwen Williams, head of Wills and Probate at Stephensons Solicitors LLP, says: “We are certainly seeing more instructions in this area, and in fact our Gifting Property web page is one of the most visited on our website, www.stephensons.co.uk.
“People choose to gift property for many reasons. It could be so they can plan their estate for the future, to see their families benefit during their own lifetime rather than after they have passed away, or to reduce Inheritance Tax or provide for future care needs.”
Gifting property is a complex area and there can be many issues involved which need to be addressed before taking the decision to relinquish control of the family home.
Gifts to children aren’t exempt from Inheritance Tax unless the person making the gift lives for seven years after making them, and if the parent continues to live in the property without paying a full market rent, it is known as a gift with reservation, which means it is potentially liable for IHT.
The parent may also have to pay tax on the benefit they get from having free or low cost use of property they formerly owned.
Olwen adds: “Giving your home or a share of it is a very big decision and it is better to seek specialist legal advice on the implications of doing so at the earliest opportunity.”
For more information on how to gift property, contact Stephensons Probate team on 01942 774395 or email probate@stephensons.co.uk.
ENDS
Notes to editors
- The latest edition of Legal 500 ranks Stephensons as a top 60 UK law firm and the fifth largest legal practice in the North West. The firm has 26 partners and more than 300 staff in six regional offices in Manchester, Wigan, Bolton, Leigh and St Helens.
Media information: Lianne Tracey
Stephensons Solicitors LLP
Tel: 01616 966 229
Email: lct@stephensons.co.uk