Yes.Asking this another way, should I expect to pay pretty much the same (in legal and state fees) as a 'sale' transaction?
On what basis/reasoning?My elderly parents have been advised by their solicitor to transfer ownership of their small rental property portfolio to their children.
I’d also like to understand the rationale.Yes.
On what basis/reasoning?
BTW it's "conveyancing" not "conveyancy".
It just struck me that maybe it's in anticipation of availing of the Fair Deal Scheme in 5+ years - offloading assets to eliminate them from the financial assessment? But, I'm just guessing based on other similar threads...I’d also like to understand the rationale.
Indeed!Never ask your barber whether you need a haircut…
There may be particular reasons why this solicitor apparently gave this advice, but for others reading this, I should say that what is proposed by parents of OP would rarely make sense. Most solicitors would advise against this for most clients.Never ask your barber whether you need a haircut…
How does transferring them to the children change that?Thanks for the many helpful replies. Regarding the rationale one reason has been to end the 'low rent, low value, high hassle' associated with these properties.
What exactly do you mean?Uncertainty about future inheritance tax thresholds was also a factor.
Might also be an idea to outline the supposed reasons FOR the proposal because no compelling one has been presented so far and most people here reckon it's probably a bad idea given the limited info posted to date.I'd be happy to hear of the reasons @MOB against such a proposal. (I don't mean that in a sarcastic way, of course).
All that's the OP's parents' business surely?How does transferring them to the children change that?
What exactly do you mean?
It's foolhardy to plan based on suspicions about what might happen at some point in the future.
Might also be an idea to outline the supposed reasons FOR the proposal because no compelling one has been presented so far and most people here reckon it's probably a bad idea given the limited info posted to date.
Yes they did:All that's the OP's parents' business surely?
The OP didn't ask for advice or a second opinion on the substantive issue.
I'd be happy to hear of the reasons @MOB against such a proposal.
The Fair Deal benefits of lifetime transfer are somewhat overrated. Another poster explained it pretty well on this thread here.Advantages include avoiding fair deal taking properties into account, assuming the appropriate ?
I don't see this as all that relevant. The parents could live another 20 years in which time house prices could double. A CGT liability of course disappears with the death of the owner. If you make the transfer today the clock starts again and the child may have a CGT bill in 20 years.(It seems the properties are not going to have any appreciable CGT).
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