There could be a number of reasons you would look to transfer the ownership of your home to someone else. But what are the reasons, and why exactly would you take this step? Let’s rummage around here, and take a look at some of the reasons. There may be one or two that surprise you……
- Supporting Family Members – If you have worked throughout your life to save up, and pay for a house, you don’t want to see that go to waste. You may want to look at transferring home ownership to children to ensure the property stays within the family, or just to show a level of financial support to the next generation.
- Joint Ownership Benefits – Owning and maintaining a property can be pricey. Unexpected issues may arise, where you didn’t foresee having to fork out a big lump of cash for something, so by spreading financial and maintenance responsibilities, you lessen the burden on yourself.
- Tax Benefits (Capital Gains Tax) – There could be loopholes out there that can be taken advantage of, totally legally, so why not? Capital gains tax exemptions or reductions can happen if the property ownership is transferred to another person. The benefit of this would be felt greater if the property has gone up in value since its purchase.
- Simplified Management – This is more applicable to the owners of property who may be getting older or experiencing health issues. It could be that the management of the property is no longer viable for the owners, and may be causing undue stress, so transferring the ownership to a trusted individual can be a huge stress reliever for the owners.
- Equity Access – Equity can build up over time in the property, and there may be a need to access that built up equity. Well, by transferring the ownership either through a sale or some sort of financial agreement, the original owner could get access to that equity and make good use of it.
- Legal Clarity (Clear Ownership) – Anything to do with possible legal issues or conflicts, you want to leave alone. The added stress and worry that could bring isn’t worth it. So, by ensuring the ownership of the property is fully transparent by transferring it, means that the legal ownership cannot be disputed, thus leading to a lesser chance of issues rearing their ugly heads in the future.
- Securing Assets – You may be looking at securing assets within the property, so by correctly transferring the ownership to someone you trust or an entity you have faith in means that assets can be protected in the future by potential claims from creditors.
There could be a whole host of reasons for you to look to transfer ownership, and here are just a few of them. Be sure that it is the right decision for you and the people around you of course, and make sure you speak to trusted people close to you, a financial adviser or a real estate agent before taking the jump with a big decision, such as this. For more information where you are, take a look here.
