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SueinHullUK wrote:

I understand that when you buy a property in Hungary you can put it in your childs' name.  We shall shortly be in this position and wondered if anyone has done this?  Did you tell your child?  Long term were there any repercussions?  Just interested on anyone's  thoughts?  Thanks. 

Yes, you can do that. People do it for tax reasons.  You can set it up such that you have exclusive rights to the property for your life time.

However, before you do that, if your kid is young, you never know what will happen.  Your son or daughter could become estranged, fall in with the wrong crowd, become addicted to drugs or alcohol or gambling etc.   Sounds negative but it does happen - plan for the worst, hope for the best.

So, personally,  despite the tax benefits, while I would buy property for my kids use, I would always retain ownership myself.   In my own estate management, I have specified all relevant non-spouse provided property will be sold and the proceeds distributed equally amongst my kids.   That's notwithstanding the requirements of HU inheritance law which is pretty clear on who gets what.

YMMV so consult a lawyer.

SueinHullUK wrote:

Did you tell your child?

Why would you not inform your child? Once they reach 18 they are then ultimately responsible for all legal issue related to that property. And the child can actually refuse upon reaching 18 to accept "ownership" their parents gave them to the property when they were under 18. And not being informed of their legal right to refuse such might be a very sticky legal issue for you later.

I assume you would want to get lifetime use rights to the property (which is essentially power of attorney over the property). But once your child reaches 18 they are legally responsible for that property for anything you do not deal with: taxes, leans, repairs, the whole legal ball of wax. So you are burdening your child. So again, why would you not tell them and let them decide if they want the burden?

@klsallewhy would you not tell them and let them decide if they want the burden?

A very good point, thank you, I would not have thought of that, this is why I need opinions.  Incidentally my son is 12, and we have discussed it with him....although at 12 its a huge concept to take on.  I did wonder if my sweet innocent 12 year old would turn out to be that stroppy teenager we all know so well!  It sounds in principle a good idea, but perhaps I will think more deeply before deciding.

@fluffy2560 Thanks for that information, perhaps seeking legal advice will help with the decision making.  We are planning to write our wills before we make the permanent move to Hungary so we could combine the two.

SueinHullUK wrote:

@fluffy2560 Thanks for that information, perhaps seeking legal advice will help with the decision making.  We are planning to write our wills before we make the permanent move to Hungary so we could combine the two.

Just remember that immovable property in HU is always subject to HU inheritance law, not the UK law.    As a sweeping generalisation, for most purposes, It's irrelevant what you write in the UK about immovable property in HU.

The division in HU if I remember it correctly is:  half to the surviving spouse, the other half divided amongst the children.   I think spouses have to pay inheritance tax in HU, albeit at a much reduced rate.  Kids can be exempt under certain circumstances (e.g. being an orphan etc).

Now it can get really complicated where there are half-children, i.e. ones from a previous marriage.  I believe they get a 1/2 of a kid's share in the 50%.

Also I think the surviving spouse can stay in the place forever.

I can imagine a really strange situation where someone has a same sex civil partner and kids through IVF or adopted.  Gay marriage is not recognised in HU so who knows where that would go.   I'm not a lawyer so maybe it's already solved.

Best to get a lawyer as inheritance law is really tricky.

SueinHullUK wrote:

@klsallewhy would you not tell them and let them decide if they want the burden?

A very good point, thank you, I would not have thought of that, this is why I need opinions.  Incidentally my son is 12, and we have discussed it with him....although at 12 its a huge concept to take on.

I am personally constantly amazed at how much 12 year olds actually "get". (But thinking back I got a lot when I was 12 too )

Just apply the KISS rule (Keep It Super Simple) and not long on details, then just end it with "if you have any questions, any time, always feel free to ask".