Complicated - Probate dome but new home owner name not changed

[Catherine1]

My Bfs father was left a property by his uncle in the 80's. Probate was done but the deeds never transferred into his name. Now..... He needs to sell this property. It has been valued at 80k and the money is to go to his son, my bf. my question is regarding tax....... What needs to be paid and by whom? What is the best way to approach this, as the deeds are still in the name of the long deceased uncle of my Bfs father.....

 

[Joe_90]

There are two issues,

1. The property has to be registered in the name of bfs father so that he can dispose of it.

2. He will be subject to capital gains tax on the profit. The property was given a value on acquisition there was indexation relief until 2001 odd which increases the cost. Annual exemption of €1,270 and then the balance is taxed at 33%.

The gift of the balance is subject to Capital Acquisitions Tax, but the first €250k of gifts from parent to child are exempt so if he has not received a gift before then no tax due.

 

[huskerdu]

2. He will be subject to capital gains tax on the profit. The property was given a value on acquisition there was indexation relief until 2001 odd which increases the cost. Annual exemption of €1,270 and then the balance is taxed at 33%.

Only if the property was not his private residence during this time.

 

[Joe_90]

Of course, an assumption on my part.

 

[dewdrop]

He will need to engage a solicitor when selling the property. Why not engage one now to sort things out.

 

[j26]

If the executor of the uncles estate is still alive, then an assent would be hand enough to bring title up to date, otherwise you could be looking at an application based on adverse possession (slow) or a getting a grant "De Bonis Non" (expensive).

Proper legal advise is essential in this to work out the appropriate and best route to take.

 

[Catherine1]

Thanks for your replies, ans sorry it has taken me so long to get back here! Yes, a solicitor is definitely needed here! The property is not habitable and has not been lived in by any of the parties concerned, so your assumption was correct Joe. I suppose what I am really wndering is would the value be calculated at the time of the probate, or now, when the deeds get transferred?