Think twice before gifting your house to your children

If you're a parent, you may be thinking about transferring ownership of your house to your children. While this may seem like a generous gesture, there are several drawbacks to consider before making such a decision.

Firstly, signing over your property means you'll no longer own it or have control over it. This means you'll need your children's permission to make any decisions regarding the property, such as selling it or taking out a mortgage.

Secondly, it's important to note that transferring ownership of your property to your children may not necessarily protect it from inheritance tax (IHT). If you continue to live in the property after signing it over, it's considered a "gift with reservation" for IHT purposes, meaning the value of the property will still be included in your estate upon your death.

Lastly, if your children run into financial difficulties, the property could be at risk. Creditors may be able to force a sale of the property to recoup the debt owed.

Overall, it's important to carefully consider the potential drawbacks before making a decision to sign over your property to your children. It's recommended to seek professional advice before taking any action.