A retired have gone sale agreed on a second hand detached home. Currently in the process of closing the sale, it's with the solicitors at this stage.
The couple have one adult son who is currently in receipt of Disability Allowance and there are slim chances of him ever working in any real capacity again.
Adult son doesn't own any property or have any savings, he lives week to week on his disability payment.
He lives at home with his elderly parents and is not in receipt of a rental allowance nor does he have his name down for HAP or social housing with the council or anything like that.
The elderly parents are wondering if they should add his name to the deeds when purchasing the property in order to minimise / avoid any tax issues when they pass on and the house is eventually left to him.
Or they are also wondering if they should just put his name down as the sole owner once the sale goes through?
Would owning a house affect his entitlements to social welfare? He has no other source or income or savings and doesn't own any property and currently lives in the family home.
The family involved have just the one child, no other siblings.
What would be the best course of action in this scenario?
Would it be prudent to have all down as 3 joint owners so the son won't have to pay inheritance tax on the house when the parents die?
The parents also own another property, I. E. The family home, so with 2 houses for the son to eventually inherit he would more than likely be facing a tax bill as the value of both houses would be over the thresholds allowed for passing property from parents to children.
Any implications for being joint 3 owners? Or for having the second house solely in his name?
I presume he would still be entitled to his weekly welfare payment as he has no other assets?
Any other things to consider or be mindful of?
I'm new to all of this and have never dealt with wills or inheritances issues before, just trying to help out some neighbours and give them some good advice going forth.
Anything else to take into consideration?
As he has no savings and is living hand to mouth each week on welfare, there is no way he could pay a hefty tax bill years down the line.
The couple have one adult son who is currently in receipt of Disability Allowance and there are slim chances of him ever working in any real capacity again.
Adult son doesn't own any property or have any savings, he lives week to week on his disability payment.
He lives at home with his elderly parents and is not in receipt of a rental allowance nor does he have his name down for HAP or social housing with the council or anything like that.
The elderly parents are wondering if they should add his name to the deeds when purchasing the property in order to minimise / avoid any tax issues when they pass on and the house is eventually left to him.
Or they are also wondering if they should just put his name down as the sole owner once the sale goes through?
Would owning a house affect his entitlements to social welfare? He has no other source or income or savings and doesn't own any property and currently lives in the family home.
The family involved have just the one child, no other siblings.
What would be the best course of action in this scenario?
Would it be prudent to have all down as 3 joint owners so the son won't have to pay inheritance tax on the house when the parents die?
The parents also own another property, I. E. The family home, so with 2 houses for the son to eventually inherit he would more than likely be facing a tax bill as the value of both houses would be over the thresholds allowed for passing property from parents to children.
Any implications for being joint 3 owners? Or for having the second house solely in his name?
I presume he would still be entitled to his weekly welfare payment as he has no other assets?
Any other things to consider or be mindful of?
I'm new to all of this and have never dealt with wills or inheritances issues before, just trying to help out some neighbours and give them some good advice going forth.
Anything else to take into consideration?
As he has no savings and is living hand to mouth each week on welfare, there is no way he could pay a hefty tax bill years down the line.