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Putting uncles house into Trust?

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  • 25-06-2020 12:56pm
    #1
    willabur
    Registered Users Posts: 1,619 ✭✭✭


    My uncle is an elderly man who lives on an island of the west coast.
    Back in the 70s he built a bungalow in the middle of the island which has amazing views of the island the ocean. He ended up not moving into the house and so it has been used mainly as a holiday home for his siblings and their children.
    He currently lives in the original family home out there and has a bit of land.

    As he is advancing in age he is looking to take care of his affairs. He doesn't think too deeply about these things and looked to leave it to one of my sisters. She is not super enthused about the idea because it exposes her to all sorts of taxation. Inheritance, CAT etc

    As there are 9 children in my family and we all get along fairly well. Would it make more sense to get our uncle to place the house into a trust? What would be the disadvantages/advantages of doing so?


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    #2
    BrokenArrows
    Registered Users Posts: 7,498 ✭✭✭BrokenArrows


    Don't think a trust makes sense.

    Makes more sense to just leave the property to all 9 children equally and have it remain as a holiday home shared by all.


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    #3
    LawBoy2018
    Registered Users Posts: 1,162 ✭✭✭LawBoy2018


    .


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    #4
    Hollybeg
    Registered Users Posts: 58 ✭✭Hollybeg


    willabur wrote: »
    My uncle is an elderly man who lives on an island of the west coast.
    Back in the 70s he built a bungalow in the middle of the island which has amazing views of the island the ocean. He ended up not moving into the house and so it has been used mainly as a holiday home for his siblings and their children.
    He currently lives in the original family home out there and has a bit of land.

    As he is advancing in age he is looking to take care of his affairs. He doesn't think too deeply about these things and looked to leave it to one of my sisters. She is not super enthused about the idea because it exposes her to all sorts of taxation. Inheritance, CAT etc

    As there are 9 children in my family and we all get along fairly well. Would it make more sense to get our uncle to place the house into a trust? What would be the disadvantages/advantages of doing so?

    You have to remember that a 'Trust' is, or was in the past anyhow, a good way to avoid tax (in this case inheritance tax). The rules surrounding trusts have changed in recent years -

    https://www.revenue.ie/en/gains-gifts-and-inheritance/discretionary-trust-tax/index.aspx

    Unless the property is worth millions / has some decent rental income, it would seem to be a very cumbersome way of dealing with inheriting one asset that may not be that cumbersome to inherit directly if split amoungst enough people. If the property was put into a trust, eventually the matter may have to be dealt with (property sale for example). Putting the property as an asset within a company doesn't makes the issue any better to be honest.


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    #5
    Mrs OBumble
    Registered Users Posts: 25,940 ✭✭✭✭Mrs OBumble


    BrokenArrows wrote: »
    Don't think a trust makes sense.

    Makes more sense to just leave the property to all 9 children equally and have it remain as a holiday home shared by all.

    Shared ownership is a nightmare to be avoided at all costs. You'll never get agreement about basis maintenance issues, and some of the 9 won't have the cash to pay for their share.


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