31 looking for advice on house purchase and financial outlook

S

sunnysides111

New Member
Messages
2
Personal details

Age: 31
Spouse’s/Partner's age: 26
No children


Income and expenditure
Annual gross income from employment or profession: 50000
Annual gross income of spouse: 50000

Type of employment: e.g. self-employed

In general are you:
(a) spending more than you earn, or
(b) saving? SAVING


Summary of Assets and Liabilities
All my savings are in Cryptocurrency. €100 in cash savings. I know this is not ideal but I will hopefully liquidate a lot of this hopefully in the future.
Pension: 15k


What specific question do you have or what issues are of concern to you?
I am looking to purchase a house in the near future. I will be looking to purchase the house with my partner and we will likely purchase in cash.
My parents are prepared to give me an early inheritance of €335000 to help in this purchase. They can also give me more as a loan that can be repaid using the 6k gift allowance over the next few years. This seems useful as it means just getting the 6k per year early rather than later seems handy and then the loan can just be written off in the future years by 6k per year until its gone. Is this as simple as just simply writing on a piece of paper loan of X amount and having both myself and my parents to sign it and then they transfer X amount to my bank and that's it?

My parents also have a rental property and I live on the family home, they want to explore the idea of potentially transferring the ownership of the family house to my name to avoid a large CAT bill in the future, but I am not aware if this is possible?

I do not have any living siblings so my parents would like to explore ways of reducing the tax bill upon their eventual passing in hopefully a long time.

I will likely go ahead and purchase a house unless there is some extremely tax advantaged way for the primary residence to be transferred into my name in which case I might alter my plans.

Thanks in advance to any responses and advice.
 
Is their any downside to getting a loan from your parents outside of the inheritance threshold of €335000. If you get a loan of 60,000, can this be done informally or should it be written up by a solicitor? How would it work, could 6k be written off the loan every year for 10 years and it would just mean you are getting the money now rather than down the road which is obviously better?
 
sunnysides111 said:
Is their any downside to getting a loan from your parents outside of the inheritance threshold of €335000. If you get a loan of 60,000, can this be done informally or should it be written up by a solicitor? How would it work, could 6k be written off the loan every year for 10 years and it would just mean you are getting the money now rather than down the road which is obviously better?
Click to expand...
Yes, you can do that. You should have it documented formally.

As the sums involved are not small. I would advise just book a consultation with a financial advisor, map out what you want and then get them outline a plan to achieve that. Will be the best investment you make! Certainly better than Crypto! That is no place to have "savings", it is a only money you are willing to loose.
 
If your parents want to give you a loan of €60K that you pay back interest free at €6K pa over 10 years, that is very straightforward, just write it down on a piece of paper and you all sign and date it.

If your parents want to give you €335K as a gift to purchase a house then I think their first step would be to take independent legal advice so there is no doubts in anyone’s mind that this is what they want to do without any coercion or pressure. If they avail of the fair deal scheme for nursing homes within a few years of giving you this gift then this would be counted as their asset. Just something to be aware of, they sound like they are young enough.

In terms of them giving you assets above the €335K now such as the family home or the rental then they need to speak to a financial advisor on the best way to proceed but they may end up paying CGT and you may end up paying CAT. If they no longer live in their ppr and you live there rent free that (the rent free) may also be considered a gift, and their are different rules on CGT on selling.or transferring ownership of a PPR or a former PPR.

And yes each of your parents giving you a gift of €3K pa (and potentially giving your partner the same) is a means of getting 6 or 12 K pa from them annually tax free.
 
sunnysides111 said:
Personal details

Age: 31
Spouse’s/Partner's age: 26
No children


Income and expenditure
Annual gross income from employment or profession: 50000
Annual gross income of spouse: 50000

Type of employment: e.g. self-employed

In general are you:
(a) spending more than you earn, or
(b) saving? SAVING


Summary of Assets and Liabilities
All my savings are in Cryptocurrency. €100 in cash savings. I know this is not ideal but I will hopefully liquidate a lot of this hopefully in the future.
Pension: 15k


What specific question do you have or what issues are of concern to you?
I am looking to purchase a house in the near future. I will be looking to purchase the house with my partner and we will likely purchase in cash.
My parents are prepared to give me an early inheritance of €335000 to help in this purchase. They can also give me more as a loan that can be repaid using the 6k gift allowance over the next few years. This seems useful as it means just getting the 6k per year early rather than later seems handy and then the loan can just be written off in the future years by 6k per year until its gone. Is this as simple as just simply writing on a piece of paper loan of X amount and having both myself and my parents to sign it and then they transfer X amount to my bank and that's it?

My parents also have a rental property and I live on the family home, they want to explore the idea of potentially transferring the ownership of the family house to my name to avoid a large CAT bill in the future, but I am not aware if this is possible?

I do not have any living siblings so my parents would like to explore ways of reducing the tax bill upon their eventual passing in hopefully a long time.

I will likely go ahead and purchase a house unless there is some extremely tax advantaged way for the primary residence to be transferred into my name in which case I might alter my plans.

Thanks in advance to any responses and advice.
Click to expand...
Unless you can afford to lose your crypto balance, I would move it out into a safer savings vehicle today, especially if you'll need it in the near future to help fund the house purchase, legal cost, furnishing etc. Otherwise, you're just gambling inheritance.
 
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