Wills & probate myth 6 – If I give away my house and live for seven years from the date of gift, the house is protected from third party claims.

5th November 2013

Marie Tisdale of Ansons Solicitors wills and probate team in Lichfield, Staffordshire, explains: “This is not true.”

There is no seven year rule in this case. The seven year rule applies to inheritance tax planning only. In other cases where inheritance tax planning is not an issue, there are no hard and fast rules about protection from third party claims. If assets are given away, this does not necessarily protect from third party claims. If it can be shown that you gave away an asset to avoid a claim; then you could be considered to have intentionally deprived yourself of the asset. You will then be treated as though you had not given the asset away and it is still yours. Before you take any steps to give away assets you should take legal and financial advice.

For further, please contact Marie Tisdale in the wills and probate team, on 01543 267981 or email Ansons Solicitors has offices in Cannock and Lichfield, Staffordshire.