Signing house over to someone else

Whiplashy

I live at home with my parents. The house has been left to me in their will. They’re talking about signing the house over to me early. Would there be costs to do this, like inheritance tax or something? The living arrangements would stay the same, just with the house in my name instead of theirs.

Spark Plug

Your parents and you will need separate legal advice from two separate firms, perhaps enshrine a right of residence for your parents and have this right noted on the folio (if registered land) protects their interest. You’ll need to get the house valued for stamp duty (1% of value). You may also need to pay gift tax if the house is valued over the threshold for parent to child.

Whiplashy

I don’t think gift tax would be an issue. I don’t know the exact value of the house, but it would definitely be below the limit. With the stamp duty, would that also apply if I was to inherit the house rather than have them sign it over now?

Spark Plug

https://www.revenue.ie/en/gains-gifts-and-inheritance/gift-and-inheritance-tax-cat/property-transferred-as-a-gift-or-inheritance.aspx

Stamp isn’t payable on foot of an inheritance

Wabbit Ears

ahhhhh the good old last sibling left in the house question.

uck51js9zml2yt

You would need to get a solicitor to draw up conditions that they can live in the house for their lifetimes otherwise there would be nothing stopping you kicking them out on the street.

We looked at this and ended up settling for the will to be executed at a future date.

tretorn

Yes, they are thinking ahead.

If they hang on another five years before needing nursing home care this means the house wont be calculated as part of the Fairdeal scheme.

This move will save thousands of euros for you in the long run.

Addle

Is there something about not having a tax liability if you've lived there for 12 years?

Whiplashy

tretorn wrote: »

Yes, they are thinking ahead.

If they hang on another five years before needing nursing home care this means the house wont be calculated as part of the Fairdeal scheme.

This move will save thousands of euros for you in the long run.

That’s the exact reason they started thinking about it. Although they’d have to get really bad before I’d see them end up in a nursing home. Ideally they’ll stay at home with me.

Victor

How well can you afford building maintenance, insurance, LPT, etc.?

Whiplashy

Victor wrote: »

How well can you afford building maintenance, insurance, LPT, etc.?

Not at all. I’m unemployed at the moment. The agreement would be that nothing changes. The house would be in my name only. It would still be there’s until they die....I don’t come out of this sounding good do I? It was there idea! I would have to see if I could come up with the money for the stamp duty and the solicitors fees. We’ll have to try and get a figure on it to see if that’s possible.

Michael D Not Higgins

If nothing changes, why are they proposing it? You need a solicitor to advise on any hidden issues with this plan.

Whiplashy

Michael D Not Higgins wrote: »

If nothing changes, why are they proposing it? You need a solicitor to advise on any hidden issues with this plan.

I don’t fully understand it, but it’s something to do with the house being used in the fairdeal scheme if one or both of them was to need a nursing home in the future.

Maxwell Itchy Crayfish

Maxwell Itchy Crayfish wrote: »

You would need to get a solicitor to draw up conditions that they can live in the house for their lifetimes otherwise there would be nothing stopping you kicking them out on the street.

Not necessary unless the reciever is an evil b*astard, which I'd imagine his parents would know at this stage anyway and would hardly be gifting a house if they thought they would be kicked out.

Whiplashy wrote: »

I don’t fully understand it, but it’s something to do with the house being used in the fairdeal scheme if one or both of them was to need a nursing home in the future.

This is a very good reason to gift rather than leave things for an inheritance, the fair deal scheme is anything but fair - theft from hard working tax payers would be a better name. Its also give the receiver much more certainty about their own future when it comes to things as important as a house/farms etc - its an easier/less stressful way to do things.

Even if the house is over the tax free threashold you are exempt once you lived with your parents for 3 years prior to the transfer.

uck51js9zml2yt

Ellen Old-fashioned Manger wrote: »

Not necessary unless the reciever is an evil b*astard, which I'd imagine his parents would know at this stage anyway and would hardly be gifting a house if they thought they would be kicked out.

The quality of family relationships can change very quickly.

My solicitor advised it when my mother was considering giving the house to me during her lifetime.

Dial Hard

Ellen Old-fashioned Manger wrote: »

Not necessary unless the reciever is an evil b*astard, which I'd imagine his parents would know at this stage anyway and would hardly be gifting a house if they thought they would be kicked out.

There was a case of this very thing happening in Wicklow a few years back. Father died, left the house to son on the basis that the son would allow the mother to live there until her down death, son turned around almost immediately and tried to sell the house out from under her. She took him to court and won, iirc.

Never underestimate the capacity for people to be absolute dicks where property is involved.

virgo69

Ellen Old-fashioned Manger wrote: »

Not necessary unless the reciever is an evil b*astard, which I'd imagine his parents would know at this stage anyway and would hardly be gifting a house if they thought they would be kicked out.



This is a very good reason to gift rather than leave things for an inheritance, the fair deal scheme is anything but fair - theft from hard working tax payers would be a better name. Its also give the receiver much more certainty about their own future when it comes to things as important as a house/farms etc - its an easier/less stressful way to do things.

Even if the house is over the tax free threashold you are exempt once you lived with your parents for 3 years prior to the transfer.

And who else is going to pay for your nursing home care if you can't avail of fair deal?....the tax payer!!
And what if you can't get a place because you can't avail of fair deal....you stay in a much needed hospital bed!!

Fair deal might not appear to be fair but it's much fairer than the UK scheme from what I can make out and you wouldn't want to be living in the US.

Wabbit Ears

From persoanal experience parent/kid relationships can change overnight, especially when you add partners and grandkids into the equation.

Maxwell Itchy Crayfish

Maxwell Itchy Crayfish wrote: »

The quality of family relationships can change very quickly.

My solicitor advised it when my mother was considering giving the house to me during her lifetime.

To be honest the idea of it would never even enter my head (or my parents head) in this situation. Not only that I'd actually think it's the sort of thing that might sour a relationship by suggesting it from either side.

virgo69 wrote: »

And who else is going to pay for your nursing home care if you can't avail of fair deal?....the tax payer!!
And what if you can't get a place because you can't avail of fair deal....you stay in a much needed hospital bed!!

Fair deal might not appear to be fair but it's much fairer than the UK scheme from what I can make out and you wouldn't want to be living in the US.

Yes the tax payer, who is paying taxes for this reason but if they happened to own a house or have some cash which they have earned, paid for and want to pass on it can be taken off them despite paying tax all their lives.

Thankfully some sense has been seen with farms being more or less exempt from the scheme very soon as that was even worse.

Whiplashy

I understand completely where people are coming from on the legal point of my parents being guaranteed use of the house until they die. I’ll be happy to go with whatever they see fit, although the house would never be sold. It is my home rather than an asset. We would of course be getting legal advice, and that will come from their solicitor. My parents have no savings to speak of. The house is their one asset and it worries them that we could end up in a situation of having to sell it. The issue of the house was already raised a few years ago and my other sibling is happy with it coming to me. It’s only recently we were made aware of the fairdeal scheme through another family member needing to avail of it. My parents feel the only logical thing to do is transfer ownership, but of course we will be discussing it with their solicitor and doing what is best for all of us.

Touchee

If they gift the house to you, your parents won't have to pay capital gains tax, assuming this was their principal private residence (basically lived in it since the house was bought)

If the house market value is less than €310,000 you won't have to pay any capital acquisitions tax.

The stamp duty is only 1% of the value of the house.

If they leave the house to you as an inheritance, you may qualify for dwelling house exemption.

salonfire

Ellen Old-fashioned Manger wrote: »

To be honest the idea of it would never even enter my head (or my parents head) in this situation. Not only that I'd actually think it's the sort of thing that might sour a relationship by suggesting it from either side.



Yes the tax payer, who is paying taxes for this reason but if they happened to own a house or have some cash which they have earned, paid for and want to pass on it can be taken off them despite paying tax all their lives.

Thankfully some sense has been seen with farms being more or less exempt from the scheme very soon as that was even worse.

So if the costs are increasing (i.e. because of the aging population), I assume you'd have no issue paying more taxes as a working person?

You are already paying 50% of your income to the Govt. You are willing to pay even more .. ?

Speak for yourself, because I'm not willing to pay more.