Header Ad Module



No announcement yet.

Advice on ''Power of attorney VS transfer of property''

  • Filter
  • Time
  • Show
Clear All
new posts

  • Advice on ''Power of attorney VS transfer of property''

    Hi All,

    New here and require an expert advice on a matter.

    I'm planning to buy property from a relative settled in USA, I live in UK.

    Advice i want is that my relative has suggested that he can gift me the property instead of official sale and could save some taxes. Second option which he advised that a ''Power of Attorney'' can be made through which I would become the beneficial owner of that property and could do whatever I want to do with that property in future i.e Sell it on, rent it etc etc.

    I have few questions as I'm unaware of US laws and regulations and hoping someone here might have this knowledge.

    1. What would be the difference if property is not registered in my name and i merely hold a power of attorney. Is it considered in the eyes of law that I'm the owner of that property e.g if i want to secure a loan against that property would I be able to do that?

    2. Any more complications if I just hold power of attorney, can this be revoked by the person who has granted this?

    Appreciate this is not an easy one, however would be great-full if anyone can shed some light on this matter.

  • #2
    Originally posted by 0c2pus View Post
    New here and require an expert advice on a matter.
    My Emphasis.
    Facebook Page


    • #3
      I invest in the USA so understand the basics of their system. You could set up an LLC and transfer ownership that way. Gifting would also work, depending on location and real value you can write down values significantly in the USA. The cleanest solution IMHO from a tax perspective is set up a single member LLC, convey the property and becomes the sole shareholder. Single member LLC's are disregarded int he USA so any income or losses flow through to you personally and can be accounted for in your UK tax returns.
      The cheapest option is probably just to quit claim deed the property to yourself at a low price, but this can cause some issues with title insurance for the first 3 or 4 years. So a single member LLC is the way to go. Feel free to PM or email me if you'd like more info.