Gunstons has recently commented on the validity of a donation, as well as advising on the tax implications.
While an older person may fruitfully consider the option of donating a property to one of their children during their lifetime, subject to the condition that the benefit of that donation will only pass to the child on the death of the parent, this has various implications:
1.It may not protect the child against the parent changing their mind and selling the property during their lifetime.
2.It will not protect the child from the parent revoking the donation.
The donation is free from donations tax, but transfer duty will be payable within 6 months of the child accepting the donation. The parents will must be carefully drafted so as not to conflict with the donation. In certain cases, a condition can be registered against the title deed to protect the donee (childs) interests.
Feel free to contact us to advise on donations, estate planning, wills and tax.
