Should You Transfer Property To Your Children?

If you transfer your property into your child’s name you will no longer be the legal owner.  This means you could be forced out of the property if, for example, you fall out with them or they decide they want to sell or rent the property or perhaps even live there themselves.  

The most common reason why people transfer their property to their children is to avoid having to pay for Care fees. The local Health Trust could view this as “deliberate deprivation of assets” and, if proven, they could ignore the transfer of ownership and include the value of the house in their Financial Assessment for Care costs. So totally ineffective planning which also exposes you to other risks……..

What if your son/daughter goes through a divorce? Their ex-spouse would have a legitimate claim against their estate which would then include your property and may mean that your house is sold to fund part of the divorce settlement. 

Another risk to think about is bankruptcy.  If you sign property over to children and they find themselves in financial difficulty, your house could be sold from underneath you to pay off their creditors.

Transferring property to your children like this does NOT protect your home. Trusts are extremely effective structures for protecting assets against such circumstances and can ensure that your hard-earned wealth is passed down through your own Bloodline, out of the clutches of ex in-laws and creditors.