Gifting Property to Adult Children
Are you considering gifting a property to your adult children? There are many reasons why you might consider gifting your property to a family member. Perhaps you want to help them get into the property market, or maybe you don’t want to leave the house to them in your will. Whatever your reasons are, unfortunately the process of gifting a house is not as simple as you might think.
Gifting a property to a family member is a title transfer, much like a sale. Even when the property transaction is a gift, there are certain legal obligations that you will need to meet. For example, there are legal documents that need to be prepared and lodged correctly. For another, there are fees to calculate and pay. Before you make any mistakes, it’s a good idea to involve a professional property conveyancer in the process. So, what is involved in gifting a property to your adult children? You must know What does conveyancer do that is very important to understand
What fees are involved in gifting property to adult children?
Before you start the property transaction, you and your adult children should understand that there will be costs incurred by both parties as part of the property transfer.
Fees payable by your children
Stamp duty. Even when the property is a gift, the new owners – your children – are still liable to pay stamp duty. This fee is calculated by the property’s market value, so although there is no money changing hands during this transaction, you will need to hire a property valuer to appraise your property. There are instances where stamp duty does not apply to a property transfer, which is why you should involve a property conveyancer as soon as possible. A property conveyancer will be able to tell you if your children are exempt from paying stamp duty and, if not, will be able to calculate the amount based on your state or territory. What is conveyancing you must know about it.
Legal fees. The legal process of transferring a property title can get complicated, so it is important to involve a property conveyancer in the process. Luckily, when the transaction is a family affair, you can easily use the same property conveyancer to represent both parties. These legal fees can therefore be split between you and your children. Do you know conveyancer fees if not ask for conveyancing company
Fees payable by you
Capital Gains Tax (CGT). If the property is one of your investment properties, you will likely have to pay CGT when you transfer the title to your children. The actual cost of the CGT fees varies from person to person, depending on the amount of capital gains or losses made while you owned the property. These costs are added to your taxable income for the year of transfer. If the property is your primary residence, CGT doesn’t apply.
Valuation costs. To accurately report your capital gains/losses and calculate stamp duty, you will need to employ a professional property valuer to assess the property for its market value. Having a certified valuer assess the property can cost anywhere between $300 – $900 depending on where the property is located. What conveyancers do. There are so many things you must know
Legal documents involved in gifting property to adult children
Depending on your circumstances, you may need to complete and lodge some or all of the following documents:
- Title search and plan;
- The council planning and information certificates;
- Water statement;
- Building certificates;
- Roads proposal search;
- A contaminated land report; and
- Land tax.
Each property transfer is unique, so you will need to speak to your conveyancer to decide which documents you should complete and if there are any you can forgo. They may also advise you to organise a Gift of Deed.
The team at Jim’s Property Conveyancing can help you with any questions or concerns you may have about transferring your property title as a gift. To speak to one of our friendly and experienced staff for expert advice on property conveyancing services in Australia, don’t hesitate to get in touch with our friendly and professional staff on 13 15 46. There are some conveyancer in Brisbane try property conveyancing Brisbane which is good. If you living in Melbourne and looking conveyancer try property conveyancing Melbourne. You also need to contact property conveyancing Sydney. And get advice a quote from professional expert