handing over your home to children

I'm 65 now and own my little two bed house. I've been thinking about putting the house in my two children's names . I feel if I live to be old and can't cope and have to go in a home my property will have to be sold for my care. I would like my children to have the benefit of my hard work to help them in life.

Both kids have homes with large mortgages , I think this may have implications but don't understand enough of the legal things.

Any advice please. Maybe you have done this ?

Re: handing over your home to children

I think if you put it into a Trust Fund for your children, the house goes to them and if you fall ill and go into a home a percentage goes to the home? I think...

Re: handing over your home to children

Susan there are a number of pitfalls which were created to prevent people doing the thing you are considering .
I would advise that you seek legal advice.

Re: handing over your home to children

This could be just talk I don't know, but I was thinking of signing over our house to our only child (Daughter) before it could be sold for other reasons, her understanding was the person signing over had to live for 7 years after or it became null and void.
Now before anyone says your wrong, yes I could be, but would be interested to know where one does stand on this.

Re: handing over your home to children

I think that is correct I think Marj and I understand once the house is handed over the person then has to move out pay a market rent to the chidren.
I am not sure if this is still the case but it was a couple of years ago when my BIL and Sister considered doing it for his mothers house. She died within 7 years anyway.

Re: handing over your home to children

There are folk doing this to avoid paying care fees, expecting the taxpayer to foot the bill, so there must still be ways to do it.

Re: handing over your home to children

Just found this info, there was a lot more but this is on the subject of this thread.

The fourth issue is avoiding residential care fees: The most common reason that clients have of wanting to transfer property to their children is to avoid having to sell their home to pay for care fees. Transferring property to your children like this does NOT protect your home. Often this is classed as a gift with reservation. This is where you have made a gift but have reserved all the rights over it and so if care needs were to a rise this gift would be seen as an attempt to avoid paying for care. Therefore the property would be considered as part of your estate and used to fund your care fees.

Re: handing over your home to children

That's how it should be, as national insurance contributions made while working were not enough to cope with exorbitant fees charged today. There are still ways around it though. I know a few people who are in similar situations. My ex lives in his parents home with no rent to pay so that his Dad can have free sheltered flat. Not sure how things will pan out when his Dad dies but, they've gone into every aspect of it, so they get as much as possible passed on to family.