How can you pass your house to someone else in your will?

Your home is often your most valuable asset and you will, of course, need to think carefully about who you want to pass it on to when you die and how you pass it in your will to ensure your loved one receives their inheritance as intended.

Matthew Cooper a Partner in the Private Client team at WBW Solicitors in Paignton, outlines what you should consider when planning to pass your home to someone else in your will, and he explains why you should use a solicitor to draw up your will to avoid any potential pitfalls.

Ownership considerations

How you bequeath your property will depend on how you own it. There are different ways of holding a property and the type of ownership you have will dictate how you can pass on your home in your will.

• If you are the sole owner and own the property outright, to pass the property onto a someone else, you simply need to name them as the beneficiary in your will and the property will pass to them after your death.
• If you own a share of a home with another person as ‘tenants in common’, you can leave your share of the property to whomever you choose in your will. They will then take possession of your share of the property alongside the other tenant in common.
• If you own your property with someone else as ‘joint tenants’, when you die your share of the property will automatically pass to the other joint tenant: your share of the property is no longer yours to bequeath.

Children

Children are not allowed to inherit property until they are 18, so if you want to pass your property to your child, you can ensure they receive their inheritance by setting up a trust. Your share of the property will be transferred into the trust and the assets will be safeguarded by one or more trustees until the child turns 18 and they can claim their inheritance.

There are a number of different types of trusts you can set up, all with different levels of discretionary power you can award the trustees. All the trusts have different tax implications too so you should take both legal and tax advice before setting up a trust.

Other considerations

When you pass on a property after you pass away, any outstanding debts against the premises will also be passed on. If your property is still subject to a mortgage, therefore, your beneficiaries will have to either repay the loan, or remortgage the property.

When you pass your property to someone in your will you can do it in a number of ways. You could make a specific bequest, leaving the property to someone in its entirety. This might be appropriate if you want to pass the property to your partner and you have no children that you need to provide for.

If you do have children, a reversionary bequest may be more appropriate. This allows you to leave the property to your partner for their lifetime, but with the condition that after they die the property passes to your children.

How a solicitor can help

It is highly advisable to seek legal advice when you want to leave someone a property in your will. Our specialist team of wills and trusts solicitors can talk you through all the possible connotations, set up any necessary trusts, and help you change your property ownership from a joint tenancy to a tenancy in common if you want to leave your share of the property to someone other than the joint tenant.

They will ensure the will is legally valid and drafted in a way which minimises any liability for inheritance tax for your loved ones, while precisely reflecting your wishes so your property passes seamlessly to your chosen heir.

For more information on wills, or any other private client issue, contact Matthew Cooper at WBW Solicitors in Paignton on 01803 546104 or email matthewcooper@wbw.co.uk.

WBW Solicitors has offices in Axminster, Bovey Tracey, Brixham, Chard, Exeter, Exmouth, Honiton, Launceston, Newton Abbot, Paignton, Seaton, Sidmouth, and Torquay.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.