The risks of transferring part or the whole of my home to my children: four risks homeowners need to know

Transferring your home to your children might feel like a smart way to “get things in order” but this common decision can lead to serious consequences you may not expect.

1. Divorce – your home could be lost

If your child goes through a divorce, their share of your home could be included in their divorce settlement. You could end up sharing your home with their ex-spouse, or even be forced to sell.

2. Bankruptcy – your home at risk from creditors

If your child gets into financial difficulty or is declared bankrupt, their assets — including their share of your home, could be used to pay off debts. That could put your home at risk of repossession or sale.

3. Family fallouts – you lose control

Even in the closest families, things can go wrong. If relationships break down, or your child’s situation changes, you may lose control of your home and in some cases, even the right to live in it.

4. Care fees – it might not work

Many people believe giving their home away helps avoid care fees. But councils can treat this as ‘deliberate deprivation of assets’, meaning you’re still liable as well as your children!

Before signing anything or making changes to your homeownership, speak to us. What seems like a kind gesture could cause financial and emotional distress later. Let us help you make a safe, informed decision.

Contact our Private Client team at Owen Kenny on 01243 532777 or email info@owenkenny.co.uk with your enquiry.

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