Buying property in Childrens name
Buying property in Childrens name
I would imagine this has been asked before , apologies if the case.
Can we buy a Spanish property for me and my wife to live in but have all the deeds etc put in our childrens names ?
Can we buy a Spanish property for me and my wife to live in but have all the deeds etc put in our childrens names ?
Re: Buying property in Childrens name
You can put it in whoever name you like but they may have to prove how they obtained the funds to pay for it. The pitfall is if you all fell out they could sell it and there would be nothing you could do to prevent that as technically its theres.
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Re: Buying property in Childrens name
More to the point, the children may fall out with each other, either before you shuffle off this mortal coil, or when you do, over what to do with the property, and who will pay for the upkeep etc. Do they actually want a property in Spain?
Don't worry about what people think, they don't do it very often
"Acquiring a dog may be the only opportunity a human ever has to choose a relative," Mordecai Siegal 1935-2010.
"Acquiring a dog may be the only opportunity a human ever has to choose a relative," Mordecai Siegal 1935-2010.
Re: Buying property in Childrens name
Good points , something to mull over.
Thanks
Thanks
Re: Buying property in Childrens name
Further to the valid points already mentioned by our learned colleagues...
I guess that you are thinking about saving hassle for your off-spring but to be honest your proposal could be opening a 'can of worms', probably better if you rented a long term property and use your capital to enjoy yourselves and /or give some money to your children and help and advise them how to spend it wisely ?
Obviously we don't know your personal circumstances, but hope this helps.
Regards,
Gordon
I guess that you are thinking about saving hassle for your off-spring but to be honest your proposal could be opening a 'can of worms', probably better if you rented a long term property and use your capital to enjoy yourselves and /or give some money to your children and help and advise them how to spend it wisely ?
Obviously we don't know your personal circumstances, but hope this helps.
Regards,
Gordon
Re: Buying property in Childrens name
Hola
Yes you can - I did it in 2002. I chatted at length with Blevins Franks and it was the best £480 I have ever spent. I was advised to get an usufructo to give me the right to live in the property. The death duties at the time were 35% of the gain in property price!
Davexf
Yes you can - I did it in 2002. I chatted at length with Blevins Franks and it was the best £480 I have ever spent. I was advised to get an usufructo to give me the right to live in the property. The death duties at the time were 35% of the gain in property price!
Davexf
Re: Buying property in Childrens name
Gordon , I just don't like renting property , I like to alter things put my mark on a house , its a sensible idea but not for me.
Dave , sounds like you are very happy with your action
Dave , sounds like you are very happy with your action
Re: Buying property in Childrens name
Yes very happySwallow wrote:Gordon , I just don't like renting property , I like to alter things put my mark on a house , its a sensible idea but not for me.
Dave , sounds like you are very happy with your action
Davexf
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Re: Buying property in Childrens name
If buying in children's names...does that mean they must have NIE numbers and be registered at the tax office and submit tax forms.
Re: Buying property in Childrens name
Hola
Yes they have NIE numbers but I have known people buy houses with a passport number! There is a non-residents tax for owners of holiday homes.
Davexf
Yes they have NIE numbers but I have known people buy houses with a passport number! There is a non-residents tax for owners of holiday homes.
Davexf
Re: Buying property in Childrens name
All the children who are on the deeds will need an NIE. They may need to pay a bit of tax if you are classed as renting from them. If you are living there FOC you should be ok.
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Re: Buying property in Childrens name
If you set it up with you holding a usufruct, there will never be any question of you renting it, for payment or FOC as the usufruct gives you the right to use it as much as you like and it can never be sold without your permission.
I assume you are non tax resident elsewhere in Spain when you set this up, otherwise there will be gift tax implications.
Sid
I assume you are non tax resident elsewhere in Spain when you set this up, otherwise there will be gift tax implications.
Sid
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Re: Buying property in Childrens name
Buying in the names of your children is probably even far more of a gamble than betting all of your money on the result of the Grand National.
Are the children married? Do they have a secure relationship which is guaranteed one hundred per cent not to fail? Any future divorce could see the estranged spouse or partner ending up with a half share in that offspring's share of the property even if it is not in their joint names.
In the unlikely but not impossible event that the child(ren) should predecease you and your wife you would have to pay inheritance tax in order to regain ownership of the property.
Usufruct gives you the right to live in the property during your lifetime but If you write an usufruct clause into the escritura and you decide between you to sell up prior to your deaths you would have to pay to redeem the usufruct on a sliding scale relative to your ages and the value of the usufruct before you can sell the property.
Usufruct is there to protect you but if you are absolutely certain of the loyalty of your children and the stability of any relationship they may be in or enter into in the future why would you need that protection in the first place?
The children would need to obtain NIE numbers and register with AEAT but it is the usufructarios (you and your wife) who will be the ones responsible for making the annual non-resident tax declarations not the owners of the property so, if you don't have them already, you would also need NIE numbers and be required to register for the payment of tax.
There is certainly a case for considering the usufruct procedure when drawing up a will but in the circumstances you describe I would suggest that it is not to be recommended.
It is easy for me to say all this because we have no children and once we have both shuffled off what is left of our assets will donated to the Horse Trust in the UK but you should think very, very carefully before going down the bleak and uncertain road of purchasing in the names of your children.
Are the children married? Do they have a secure relationship which is guaranteed one hundred per cent not to fail? Any future divorce could see the estranged spouse or partner ending up with a half share in that offspring's share of the property even if it is not in their joint names.
In the unlikely but not impossible event that the child(ren) should predecease you and your wife you would have to pay inheritance tax in order to regain ownership of the property.
Usufruct gives you the right to live in the property during your lifetime but If you write an usufruct clause into the escritura and you decide between you to sell up prior to your deaths you would have to pay to redeem the usufruct on a sliding scale relative to your ages and the value of the usufruct before you can sell the property.
Usufruct is there to protect you but if you are absolutely certain of the loyalty of your children and the stability of any relationship they may be in or enter into in the future why would you need that protection in the first place?
The children would need to obtain NIE numbers and register with AEAT but it is the usufructarios (you and your wife) who will be the ones responsible for making the annual non-resident tax declarations not the owners of the property so, if you don't have them already, you would also need NIE numbers and be required to register for the payment of tax.
There is certainly a case for considering the usufruct procedure when drawing up a will but in the circumstances you describe I would suggest that it is not to be recommended.
It is easy for me to say all this because we have no children and once we have both shuffled off what is left of our assets will donated to the Horse Trust in the UK but you should think very, very carefully before going down the bleak and uncertain road of purchasing in the names of your children.
Let's go Brandon!
Re: Buying property in Childrens name
Wise words from beachcomber again. This is fraught with danger and complications
Re: Buying property in Childrens name
Absolutely , I have changed my mind
Re: Buying property in Childrens name
Swallow,
Good to see that your common sense has prevailed.
I fully understand your thoughts about not renting,but buying a property and putting your 'mark' on it, but as I mentioned earlier ,it is such a minefield when attempting to deviate from a straight forward purchase.
It is interesting to note how useful this forum is when you can get such varied and helpful advice from members who come from all walks of life.
Good Luck.
Regards,
Gordon
Good to see that your common sense has prevailed.
I fully understand your thoughts about not renting,but buying a property and putting your 'mark' on it, but as I mentioned earlier ,it is such a minefield when attempting to deviate from a straight forward purchase.
It is interesting to note how useful this forum is when you can get such varied and helpful advice from members who come from all walks of life.
Good Luck.
Regards,
Gordon
Re: Buying property in Childrens name
Beach, I could not have put it better myself. ja ja ja
Re: Buying property in Childrens name
Hola
As always, it is important to be properly informed about your tax liabilities by seeking professional guidance. British expatriates living in Spain should speak to an adviser with in-depth knowledge of the tax regimes of both countries.
I advised to consult a professional advisor; I know members of this forum dislike the idea of living in your children's property. While it works for me it will not work for everyone. Therefore proper professional advice is necessary; especially in the ever changing world of tax.
Davexf
As always, it is important to be properly informed about your tax liabilities by seeking professional guidance. British expatriates living in Spain should speak to an adviser with in-depth knowledge of the tax regimes of both countries.
I advised to consult a professional advisor; I know members of this forum dislike the idea of living in your children's property. While it works for me it will not work for everyone. Therefore proper professional advice is necessary; especially in the ever changing world of tax.
Davexf
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