I have been in an IVA for over 1 year now and all is going along ok
My dad has decided he wants to transfer a house worth aprox £120,000 into my name - The property will not be mine as long as he is alive, but he feels he just wants to avoid any issues we might have in the future between us brothers and sisters by transferring this house into my name and other properties onto by brothers and sisters name.
The house is fully paid and has no loans outstanding
Now the problem is my dad has no idea I am in an IVA and he wants to do this in the next few weeks
Where would I stand with my IVA if this happened....would it be seen as an asset and taken off me?
I am really confused about this and really hope someone can help and give me some advice
hi and welcom problemtosolve, hopefully one of the forum's experts will be along soon to answer this one, it might be viewed as a windfall/inheritance however i am not that wise on the ins and outs of the world of IVA so wait for a reply from one of the experts.
Om shanti, namesté, good luck to all who are embarking on the IVA journey, it isn't always an easy one but the outcome is the best.
IVA COMPLETED August 2012, received Completion certificate 18.4.13.
Not sure about this one. It wouldn't be taken off you though, I do know that.
It may be that you will be ok if the property only becomes yours after his death.
Hopefully, as orchid says, one of the professionals will be along soon to advise.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
this will affect your iva because it is a windfall.
I am guessing your dad is doing this to avoid inhertance tax, without looking at the worst, this will only work if carries on living after 5 years from doing this.
However this could be an opportinuty to get a mortagage on this property to offer and full and final
James is correct. If the property is transferred to you then it belongs to you, however your Dad would claim a substantial beneficial interest. Why does he not just amend his will to leave you as sole beneficiary of the property upon his death? Or is this being done to perhaps avoid an inheritance tax liability in the future?
My dad is wanting to avoid the tax and avoid having to write a will.
If the property was put on my name would I have to tell my IP and would my IVA not continue as my debt was £60,000 in total and the property is worth £120,000+
Even if the property is put into your name you have paid nothing towards it therefore surely have no beneficial interest in it until your father dies. If this happens during the course of the iva you would probably be expected to release equity from the property.
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Melanie in answer to your question in regards to the will, he wants to avoid the taxes and hence does not feel a will is needed if he completes all the transfers in the next few weeks
Just to let you know my dad is only 52 so hopefully he has many more years to go
If you was my IP Melanie what would happen, if I called to inform you of this situation would I have to sell the home or obtain a loan to pay of my IVA
If I were your IP, I would want to understand what consideration you had obtained as a result of the transfer of the property. Given that the property would be in your name, you will then be the owner of an asset and unless your father intends to hold any security over the asset in legal terms it is yours. If your father is then going to claim a beneficial interest over the property, it rather defeats the benefit of him transferring it in the first place. You and he should take legal advice about the effects of your IVA on the transfer as a matter of urgency.
If I was you, do not have anything transferred to your name.Come clean with the old man about the IVA debt...he will wonder why you have an issue with having the house if you don't??
I do not think hiding debts from familes is a good idea, I told my Dad and my brother and that was weight off my shoulders.Its no shame.Obviously they aren't going to rejoice but hey its better than keeping it quiet.
Have yourself as a named benificiary by all means. If you own the property,and if creditors know this then they are entitled to it. You have assets that can clear the debt. Or perhaps a new EQ release clause could be introduced in your on your IVA as a new modification.
Last edited by timeforchange on Mon Jul 13, 2009 11:39 am, edited 1 time in total.
Why not get him to stick it into a Trust. There should be a way to set it up such that the ownership would pass to you only in the event of his death (I can't remember if its a 'life interest' or 'interest in possession). There may be inheritance tax issues around this - you should try to obtain professional advice.
