Gifted Family Homes and Legal Rights of Siblings

cpoc1987 · 06-10-2022 12:18pm #1

Hello everyone.

My parents very generously have offered to gift us my family home. They wound sign over ownership etc to us and they are moving into a smaller house elsewhere. My siblings and I all currently live outside Ireland. I am the youngest with no property to my name and considerably less in finances than my siblings. I am also the only one who is contemplating moving back to Ireland in the near future. The idea is they would gift the home to me and I(and my husband) would undertake all the necessary repairs and re-modelling on the house at our expense. We would also be a quick drive from my parents, so we will be the ones to care for them in their advancing age which we are happy to do. I will then not be included in any inheritance in their will, the other property and any finances will be left to my 3 siblings.

In conversation, my brother in law, who works in property management, mentioned that it is this were to happen that I would need to buy my siblings out of the property as they have a right to it aswell. He also mentioned as I would be adding significant value with any work I might do that I may then need give them another pay out.

I don't really understand this as my parents would be transferring ownership of the property to me, 'gifting it' and I would be using my own my money for any necessary repairs. As mentioned my parents will not be living with me and will no longer have any claim over the home, they will be living elsewhere. I certainly hope my parents are going to live at least another 10 years. But this conversation with my brother in law irked me as I am unsure if he is legally right or wrong? To me it would not be worth it to take on the property if its going to cause any rift with my siblings.

Can anybody give me any advice please?

Thank you.

Mrs OBumble · 06-10-2022 2:52pm

You need to see a solicitor.

I think your BIL is blowing smoke (esp with having tompay for a share of improvements you made!) but I could be wrong.

Also important to note that it's Irish law which applies here, not the law wherever your BIL lives.

Sorolla · 06-10-2022 3:04pm

I would also suggest you see a solicitor and also maybe an accountant.

you could very well be liable for „gift tax“ as your parents will be gifting you the house.

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

cobham · 06-10-2022 3:04pm

Big tax implications of such a gift at this stage. Better to have it as a bequest outright in their will. You could rent from them meanwhile and/or accept an annual tax free gift of 12k euro.

Jim_Hodge · 06-10-2022 3:04pm

BIL is talking rubbish. Your siblings will be catered for from the will in due course. This gift isn't prohibited by inheritance laws. All the same have a discussion with an Irish solicitor. There may be tax implications if the property value is over your lifetime gift exemption.

Victor · 06-10-2022 3:26pm

Have a look here: https://www.revenue.ie/en/gains-gifts-and-inheritance/gift-and-inheritance-tax-cat/

Note that what you are receiving is a gift, not an inheritance. The Succession Act 1965 requires proper provision for all children, within the donors ability. Assuming that your siblings get something material from the inheritance or have had substantial support in the past, e.g. being funded through college, gifted a deposit for a house, etc., then this gift shouldn't be a problem.

If you need to take out a large loan / mortgage for the improvements, the bank will likely insist the property has been legally transferred. Insulate it to bits - before you move in.

How much do you like your parents? How much do you want to put up with all sorts of shenanigans in their old age?

"I will then not be included in any inheritance in their will, the other property and any finances will be left to my 3 siblings." - and if your parents win €100m in the lotto? Or live to 103 and become a financial burden in a nursing home?

Your brother in law is spoofing to a certain degree and/or has his wires crossed, but realise he has his eye on you and your parents' money. Beware.

You and your parents should see separate solicitors familiar with property and inheritance law. Ensure tax planning is discussed.

sprucemoose · 06-10-2022 3:30pm

https://www.boards.ie/discussion/2058266275/gifted-family-homes-and-legal-rights-of-siblings

your parents can give the house to whoever they want, you dont need to buy anyone out of anything. now, maybe you are getting a better or worse deal than the other siblings depending on how much the house is worth etc but your parents can decide to do what they want with their assets etc once it is all formalised

endofrainbow · 06-10-2022 3:35pm

Someone is whispering in your BIL's ear.

Please see an Accountant and Solicitor .

cpoc1987 · 07-10-2022 3:02am

Thanks everyone for your comments, very helpful.

Yes, we will certainly seek legal advice from on Irish Solicitor before making any decisions as will my parents.

Currently my parents house is valued at 300k so I will need to check about tax to pay.

Haha just to add I am a Nurse and will have the means/contacts etc to ensure my parents are cared for. Someone mentioned my bil having his eye on the house. I don't think its the house as such I think he is a property manager and if anything would be interested in flattening the house and using the land - however that's not actually possible where my parents live - he also won't have much inheritance coming from his side and so wants to make sure my sister will not lose out on anything, I have painted him as not a nice person, but he is a reasonable guy - I was just thrown by his comments.

A lot to think about, thank you.

phildub · 07-10-2022 12:42pm

https://www.boards.ie/discussion/comment/119709436#Comment_119709436

This is incorrect, it actually makes financial sense to gift it as you get an extra 3,000 tax exemption.

OP your brother in law is completely wrong children are not entitled to anything if there is a will. The could take a claim under section 117 but all they could argue is that you received the house and so they should have received something/more in the will.

With the talks of reducing the tax allowance it would be a great idea to sign it over now so you don't loose out. It would be tax band group A so about 335,000 plus the 3,000 gift exemption before you pay tax, if I am correct, obviously verify this with a solicitor as it is not advice just my opinion

Jim_Hodge · 07-10-2022 12:55pm

https://www.boards.ie/discussion/comment/119712891#Comment_119712891

Nowhere did I say this didn't make financial sense.

phildub · 07-10-2022 1:06pm

https://www.boards.ie/discussion/comment/119712987#Comment_119712987

Apologies I quoted the wrong comment, someone had suggested it would be better to wait to receive it under the will, that was what I was referring to

TooTired123 · 07-10-2022 6:21pm

please ignore your BIL. your parents can do whatever they want with their own property, money etc anything else they own. (Buying them out lol!).

As others have said, you need a chat with a financial adviser about tax and you’ll need a solicitor for the transfer of the property anyway.

elperello · 07-10-2022 7:13pm

Just a word of advice to the parents in this arrangement.

They should note the terms and conditions of the "Fair Deal" nursing home scheme.

Pay particular attention to the way cash assets are treated.

CIARAN_BOYLE · 08-10-2022 8:10am

Your brother in law may be blowing smoke or given that you mention that you live outside Ireland he may be thinking of local law.

There are jurisdictions where a natural heir has certain rights. In one of the Euorpean states (I think its Spain) two thirds of the estate is shared amoung the children of the deceased and (whatever the will says, assuming no surviving spouse) and gifts during a period of years before death count as part of the estate.

Gifted Family Homes and Legal Rights of Siblings

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