Passing my boat down to my son

[sgjfrods]

I have tried to look into passing my boat down to my son and have found very little guidance on how to do it. We have had the boat from new and I now wish to gift it to him.

From what I have read the only official doccumentation is a bill of sale, however, considering I am not selling it it doesn't really seem appropriate. Can anyone shed any light onto this? Is the bill of sale the only way? Or is there another way of doing it?

Any help is greatly appreciated.

 

[prv]

Don't think there's anything especially complex or magical about the bill of sale. Just write up a similar form of words but stating "as a gift" instead of a sum paid?

Off the top of my head...

TRANSFER OF THE BOAT SAUCY SUE
("The boat")

<Details of the boat, length, hull number if any, SSR number, etc>

I, SGJ Frods, am the owner of the boat. I hereby transfer the boat free of encumbrances to my son, Frods Junior, as a gift.

<both sign, date, perhaps a witness?>

After all, I assume you're not going to sue each other over it, so it's just going to be put in a drawer and forgotten until perhaps one day he wants to include it among the papers when selling the boat on.

Obviously you'll need to update the registration, if any. The SSR is easy and doesn't require any particular proof.

If it's Part 1 registered then things are simultaneously more complex (you'll have to record the change of ownership with them) and simpler (I assume they have a procedure for that). But I've never owned a Part 1 boat so I'll leave that part to others.

Pete

 

[Rick_A]

My granddad just passed his boat onto me last week. Was just done with a bill of sale downloaded from RYA website. As it was new in 1978 we just put in a nominal sum as the transfer fee.

 

[prv]

My granddad just passed his boat onto me last week. Was just done with a bill of sale downloaded from RYA website. As it was new in 1978 we just put in a nominal sum as the transfer fee.

Mm, I meant to mention that as another option but got distracted by remembering the existence of Part 1

If you're worried about going off-piste with home-made documents, sell him the boat for a quid using the standard RYA form.

Pete

 

[AngusMcDoon]

I have tried to look into passing my boat down to my son and have found very little guidance on how to do it. We have had the boat from new and I now wish to gift it to him.

From what I have read the only official doccumentation is a bill of sale, however, considering I am not selling it it doesn't really seem appropriate. Can anyone shed any light onto this? Is the bill of sale the only way? Or is there another way of doing it?

Any help is greatly appreciated.

If it's a valuable boat there could be tax implications.

 

[Tranona]

If it's a valuable boat there could be tax implications.

Only if it forms part of an estate for inheritance tax purposes. No tax implications at time of gifting but potentially could be included in the estate if the person gifting dies within 7 years.

For the OP the Bill of Sale is the document of title and is almost essential as evidence that the boat is not now yours but is your son's. It will also allow him to sell it on with clear title. There is good information about transferring title on the RYA site. The usual term to include is "For £1 and other considerations" so no need to state anything representing its current value. Make sure you complete the section that says the boat has no mortgage and is free of any encumbrances. Should register the boat in his name if on Part 1 using the transfer system or on the SSR if that is where you have it registered.

 

[AngusMcDoon]

Only if it forms part of an estate for inheritance tax purposes. No tax implications at time of gifting but potentially could be included in the estate if the person gifting dies within 7 years.

That's what I meant, but as this is a changing area, I don't know the current details.

 

[Bru]

Simply do a Bill of Sale (he'll potentially have issues at a later date if you don't because it's widely accepted as the de-facto proof of ownership) transferring the boat to him "for the sum of £1 and other considerations"

That's the standard form of words used in these circs, I believe, and also when it is desired not to state in print what the deal between the transferor and the transferee actually was

(I'm no lawyer but I think there's positive legal implications if a sum of actual money changes hands, however small. I think there can be issues with a gift that are thus avoided but don't ask me what! )

 

[Tranona]

Simply do a Bill of Sale (he'll potentially have issues at a later date if you don't because it's widely accepted as the de-facto proof of ownership) transferring the boat to him "for the sum of £1 and other considerations"

That's the standard form of words used in these circs, I believe, and also when it is desired not to state in print what the deal between the transferor and the transferee actually was

(I'm no lawyer but I think there's positive legal implications if a sum of actual money changes hands, however small. I think there can be issues with a gift that are thus avoided but don't ask me what! )

See post#6 It is irrelevant what the Bill of Sale says about the consideration from a tax point of view. Only potentially an issue for inheritance tax when the value of the asset at transfer may be important for assessing the deceased estate.

 

[dylanwinter]

will you adopt me as your son....

send pictures of boat asap

yours

Ron Hopeful of Milton Keynes

 

[Bru]

See post#6 It is irrelevant what the Bill of Sale says about the consideration from a tax point of view. Only potentially an issue for inheritance tax when the value of the asset at transfer may be important for assessing the deceased estate.

Indeed but I wasn't addressing the tax side of things, oi knaa even less aboot tax than ah dee about law!

 

[lw395]

Seems possible the Op is not subject to UK tax regime, going on his username?
Some countries, yachts can be subject to CGT.

 

[maby]

Since there is no need to have it recorded on any official list unless there is a mortgage on it, simply hand him the keys, let him wait a while, then register it on the SSR himself. Hopefully, you are going to survive long enough that delayed inheritance tax will not be an issue, but why run the risk - there is no official record of ownership anywhere - keep the footprint as small as possible to minimise the risk of HMRC getting involved.

 

[prv]

(I'm no lawyer but I think there's positive legal implications if a sum of actual money changes hands, however small.

You're probably thinking of the law of contract - one of the requirements to form a valid contract is that there be an exchange of "consideration", or value. Doesn't have to be money, but money definitely counts, so a token sum is an easy way of ticking that box.

Pete

 

[maby]

Seems possible the Op is not subject to UK tax regime, going on his username?
Some countries, yachts can be subject to CGT.

That may, of course, be the case - the OP needs to clarify if he is going to get any useful input! At least in the UK, there is no requirement to register the boat, so treat it in the same way as giving your laptop to your son - in other words just hand it over.

 

[Tranona]

Since there is no need to have it recorded on any official list unless there is a mortgage on it, simply hand him the keys, let him wait a while, then register it on the SSR himself. Hopefully, you are going to survive long enough that delayed inheritance tax will not be an issue, but why run the risk - there is no official record of ownership anywhere - keep the footprint as small as possible to minimise the risk of HMRC getting involved.

Not a good idea. If the OP does not use a Bill of Sale his son will have difficulty in selling in the future as he will not be able to show clear title. If the sum involved and the OPs personal circumstances mean that there is a potential tax liability (highly unlikely!) then lack of paperwork will not prevent HMRC investigating his assets at the time, or in the case of inheritance tax up to 7 years past. This may well delay probate which the executors might find annoying.

 

[maby]

Not a good idea. If the OP does not use a Bill of Sale his son will have difficulty in selling in the future as he will not be able to show clear title. If the sum involved and the OPs personal circumstances mean that there is a potential tax liability (highly unlikely!) then lack of paperwork will not prevent HMRC investigating his assets at the time, or in the case of inheritance tax up to 7 years past. This may well delay probate which the executors might find annoying.

But the Bill of Sale is just a piece of paper that is created by the current owner and handed to the new one - it is not registered with any official body and does not prove title as far as I know. By all means write one up - I believe that you can download a blank copy from the RYA web site - the son can hold onto it for potential future use if he needs it. Boats that are not the subject of a mortgage or coded for commercial use need have no official footprint, so don't create one if you are handing it over with potential tax implications.

 

[MoodySabre]

Seems possible the Op is not subject to UK tax regime, going on his username?
Some countries, yachts can be subject to CGT.

Yachts can be subject to CGT here. Exempt Wasting Assets are those with a predicted life of less than 50 years - plenty of boats around that are older than that. So if this is the disposal of a personal chattel worth over £6000 then it should be declared if the sale proceeds are more than the original cost. https://www.gov.uk/government/publi...eet/hs293-chattels-and-capital-gains-tax-2015

 

[sgjfrods]

Thanks for all your help, as it has been within the family since new there is no previous bills of sale, and therefore there is no document that I know of that states the owner of the boat. So this bill of sale is the first proof of ownership the 30 year old boat has! Do you think that may pose a problem in the future?I just want to hand over some paperwork that can be kept in the draw (that may never be seen again) but is there just in case of any disputes in the future.

Again I really appreciate all of the great advice.

 

[Boo2]

I have tried to look into passing my boat down to my son and have found very little guidance on how to do it. We have had the boat from new and I now wish to gift it to him.

From what I have read the only official doccumentation is a bill of sale, however, considering I am not selling it it doesn't really seem appropriate. Can anyone shed any light onto this? Is the bill of sale the only way? Or is there another way of doing it?

Any help is greatly appreciated.

Sell it to him for "£1 plus other considerations" ?

Boo2