Hi all,
I've looked through other threads and couldn't find one that deals with this issue.
In a nutshell, my wife's father, wants to gift half of a house he owns to my wife and the other half to her sister. We're going to live in the house so instead of receiving 50% of the house, the sister is to receive the cash value of 50% of the house. The house has just been valued at €300k.
Option 1
The father gifts 50% of the house to my wife and we get a joint mortgage to purchase the other 50% for €150k off him. The father then gives a cash gift of €150k to the sister. This is the way we had intended on proceeding but because our bank KBC are insisting that both mine and my wife's name go on the deeds, I might be liable for CAT.
Option 2
The other option that I see is that the father gifts 50% to my wife and 50% to the sister so the house is jointly in their names. Then myself and my wife get a joint mortgage of €150k and buy the sister out of the other half.
Is option #2 the best option in terms of tax, would the sister have any CGT or other tax implications in option #2?
Appreciate any advise!
I've looked through other threads and couldn't find one that deals with this issue.
In a nutshell, my wife's father, wants to gift half of a house he owns to my wife and the other half to her sister. We're going to live in the house so instead of receiving 50% of the house, the sister is to receive the cash value of 50% of the house. The house has just been valued at €300k.
Option 1
The father gifts 50% of the house to my wife and we get a joint mortgage to purchase the other 50% for €150k off him. The father then gives a cash gift of €150k to the sister. This is the way we had intended on proceeding but because our bank KBC are insisting that both mine and my wife's name go on the deeds, I might be liable for CAT.
Option 2
The other option that I see is that the father gifts 50% to my wife and 50% to the sister so the house is jointly in their names. Then myself and my wife get a joint mortgage of €150k and buy the sister out of the other half.
Is option #2 the best option in terms of tax, would the sister have any CGT or other tax implications in option #2?
Appreciate any advise!