Will I obtain any benefit from gifting my home to my children while still living there myself?
You can transfer the title to your house into your child's name while continuing to live there, but this does not necessarily achieve anything. It is a popular misconception that such action will avoid you having to pay care home fees in the future, but anti-avoidance measures in relation to funding long-term care mean that the value of the home may still be taken into account, in spite of the transfer to the child.
It won't help to mitigate inheritance tax either, unless the parent survives 7 years from the date of making the transfer and pays a full market value rent to the child (who lives elsewhere) throughout.
There are capital gains tax implications at the point of making transfers too, plus legal costs, with potentially no benefit to the person making the transfer. Happily, there are other ways to preserve your assets in the event of requiring care in the future or to reduce your inheritance tax liabilitiy and it is advisable to seek further professional advice on this.
Contact Karen Perugini for further information.