eSignature Lawfulness for Quitclaim Deed in United Kingdom

How to eSign a document: eSignature lawfulness for Quitclaim Deed in United Kingdom

hey everybody it's christopher small the owner of cms law firm we do estate planning we do probate we do it well today i want to talk to you about not quit claim deeding your real estate to your kids before i get to that i want to remind you if you have questions about this or anything else related to estate planning or probate you can talk with us over the phone for free by going to estate meeting dot com okay um i had a client in today to do a will signing and um um in the course of doing that learned that that she believed that maybe she had added her son to her real estate via quick lindy quickly indeed is basically just a d that says not i'm not providing any warranty as the title but um i'm giving away this interest that i have in this property to this other person okay i know i just went all straight lawyer on you right there basically just a way to transfer your property to somebody else um easily and she did this because she thought that she would be able to or that if she died or when she died that her son would then just take over um the whole property that is an easy way to transfer the property to him i am here to tell you today that a that it might not work the way that you want it really depends on the specific language of the deed but if you don't do it right it won't work anyway and b if you do it that way you are opening yourself up to a bunch of potential problems and missing out on some very specific tax benefits all right let's start at the beginning if you quit claim your real estate half of your real estate for example to one of your kids while you are alive at that point in time that child owns half of that property which means a few different things they could sell their half to somebody else they could um have to go into bankruptcy and that that half could have to be sold off it could be lost right those proceeds there could be a lien put on the house um so that whenever it's sold that half is going to go to somebody you don't want to go to um they can also potentially depending on how much equity is in the in the property get a home equity line of credit and run the credit up right there's all kinds of different interesting crazy terrible things that can happen by putting somebody on your real estate that really shouldn't be there and then here's the other thing too when you die if the deed itself does not have very specific um language where you are owning it jointly and severally there's another language involved then when you die there's a there's a good chance that the half of the property you gave to your child will be owned by that child and the other half that have owned by you will still have to go through probate to get um distributed or get to get transferred over to whomever it's supposed to go to on top of that when you give away property while you are alive it's deemed to be a gift and that gift does not allow for a step up in tax basis so if you have a property and you bought it for a hundred thousand dollars let's say and now it's worth a million dollars if you give it to your child while you are alive um the child is going to take that property with a tax basis of a hundred thousand dollars meaning if they sell it at least that half okay we're getting too technical here they're gonna have to pay um a capital gains tax on all of that gain on that on that nine hundred thousand dollar gain if you wait until you die to give your child your property they will take um the property with a tax basis of a million dollars which means zero capital gains tax zero okay last but not least there is a way to do this very easily it's called a transfer on death deed google it okay take a look at it i've got other videos talking about it it's an easy way to transfer your property to anyone that you want without having to go through probate after you are dead okay all right that's it a bad idea if you're however okay i'll say this at the end but as always if you like this video please hit the like button if you know some of these heroes please share with them if you have a question or comment please leave it i will answer it and if you are thinking about doing this if you have done this or if you have any questions about this or anything else related to estate planning or probate please go to estatemeeting.com you can set up a time to talk with us over the phone for free estate meeting dot com all right that's it everybody i am christopher small i am the owner of cns law firm we do estate planning we do probate we do it well thank you for your time thank you for your attention i appreciate you and i will talk to you again soon see ya