Deeds of Gift are a way to legally add a person/people to your property’s deeds. It can also be used to transfer money or shares.
Why Do I Need a Deed of Gift
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When transferring property or money as a gift, it must be executes as a Deed because no payment is given in return. When the gift is transferred, the documentations must be witnessed by someone who will neither benefit nor disadvantage from the transference.
The 7 Year Rule
Any gift made is subject to the inheritance tax 7 year rule. If you make an outright gift of your property and you live for 7 years or ore after you made the gift, it will then be exempt from inheritance tax.
If the Donor dies within 7 years of making the gift and it is valued at more than the Inheritance Tax threshold, Inheritance Tax will need to be paid on the value of the gift, usually by the Donee (the person receiving the gift), or by the representatives of the estate. However, if you make a ‘gift with reservation of benefit’ the 7 year rule no longer applies.
We Can Help
At MW Solicitors, our mission is "To make quality legal services accessible to everyone", including those who wish to gift their property to a loved one.