Transfer of title deeds

polomora

Hello,

My parents are getting on in age (both 83), and for the last 50 years, the title deeds for the family home have been in my father's name. My mother wants to transfer the deeds, so that the house is also in her name, and in my sister's. One reason for this is to reduce or avoid paying inheritance tax.

The solicitor said that due to new legislation, two solicitors have to be used, one acting for my father, and another for my mother and sister. The fees involved will be about €180 for my father, and about €1800 for my mother and sister.

Does this sound right? To me, the fees seem excessive.

Any advice or comments welcome.
Paul

loremolis

polomora wrote: »

Hello,

My parents are getting on in age (both 83), and for the last 50 years, the title deeds for the family home have been in my father's name. My mother wants to transfer the deeds, so that the house is also in her name, and in my sister's. One reason for this is to reduce or avoid paying inheritance tax.

The solicitor said that due to new legislation, two solicitors have to be used, one acting for my father, and another for my mother and sister. The fees involved will be about €180 for my father, and about €1800 for my mother and sister.

Does this sound right? To me, the fees seem excessive.

Any advice or comments welcome.
Paul

Like any service, shop around for the best price.

valleyoftheunos

shop around, be aware that your sister could be liable for Capital Acquisitions Tax.

the culture of deference

polomora wrote: »

Hello,

My parents are getting on in age (both 83), and for the last 50 years, the title deeds for the family home have been in my father's name. My mother wants to transfer the deeds, so that the house is also in her name, and in my sister's. One reason for this is to reduce or avoid paying inheritance tax.

The solicitor said that due to new legislation, two solicitors have to be used, one acting for my father, and another for my mother and sister. The fees involved will be about €180 for my father, and about €1800 for my mother and sister.

Does this sound right? To me, the fees seem excessive.

Any advice or comments welcome.
Paul

Your mother will not be liable for tax.
Children are allowed €225,000 each.

How much is house worth?

polomora

Probably about €250,000, still waiting for a house valuation.

corkgirl246

polomora wrote: »

Hello,

My parents are getting on in age (both 83), and for the last 50 years, the title deeds for the family home have been in my father's name. My mother wants to transfer the deeds, so that the house is also in her name, and in my sister's. One reason for this is to reduce or avoid paying inheritance tax.

The solicitor said that due to new legislation, two solicitors have to be used, one acting for my father, and another for my mother and sister. The fees involved will be about €180 for my father, and about €1800 for my mother and sister.

Does this sound right? To me, the fees seem excessive.

Any advice or comments welcome.
Paul

Hi Paul,

Your solicitor is right about needing two separate solicitors now- its a Law Society direction in force since the New Year. So yes, your father will need a solicitor from one firm and your mother and sister will need a separate solicitor for a different firm.

Yes, fees do seem excessive if this is a very simple voluntary transfer. Is that fee inclusive of VAT and outlay? Make sure to check whether this fee includes VAT, Stamp duty, Land Registry fees etc....the €1,800 quoted could just be the professional fee alone!)

I'd recommend shopping around- many solicitors are doing fixed price conveyancing now- google a few and ring them up. Since the recession many smaller practices are now very competitive with their fees!

As for your motive, I think is it slightly misplaced. Inheritance Tax is called Capital Acquisitions Tax (CAT). CAT is payable on any gifts or inheritances so therefore it is equally applicable to gifts your father makes during his life and as it is to inheritance after his death.

There is no CAT payable on transfers between husband and wife so your mother will not be liable whether she gets a gift of a share now or inherits under your father's will. If the value of the gift/inheritance to your sister exceeds €225,000 then she may have to pay CAT at a rate of 33% on any excess over that threshold. This situation applies whether she is getting a gift during your father's life or after his death.

I guess that your main motive for doing this is so that your mother and sister get the house automatically after your father passes away and to sort out your father's affairs while he is still alive.

I'd say shop around- you can get fees for less than that.

Hope this helped!

polomora

Many thanks Corkgirl.

Just forwarded your reply to my sister.

corkgirl246

No problem Paul. Glad to help.