a gift of a house

J

john luc

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An Aunt of mine has offered both my sister and I a house that she inherited. It has a value of €100,000. Both my sister and I are married and neither of us have used CAT allowances so I have suggested that my Aunt sign over the house in a split way with 1/3 each to my sister and I and 1/6 each to each of our married partners. The reason is to make use of the cat B allowances for my sister and I and the cat C allowances for our married partners. Is this OK or am I missing something. Later I intend to buy out my sister and her husband as they do not want to keep it.
 
You are making life very complicated to have such multiple ownership of a house. You will spend far more than you will pay in CAT in legal battles over the property.

Stick to the current plan and pay the CAT.

Brendan
 
No problem with our family glad to say. Sister and I are on the same hymn sheet as are the partners. With the partners being able to use cat C allowance means we do not pay any tax and they get to use an allowance they are not likely to get to use.
 
Do you and your partners own other assets in common?

When I read it first, I thought you had 6 partners, but now I see it's "only" 4.

Believe it or not, couples split up. If that happens, and you have a complex ownership, it will be hard to solve.

Why does your Aunt not simply sell the property and give each of you the cash to use up your allowances or €3k a year and preserve the allowances?

Brendan
 
john luc said:
No problem with our family glad to say. Sister and I are on the same hymn sheet as are the partners. With the partners being able to use cat C allowance means we do not pay any tax and they get to use an allowance they are not likely to get to use.
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There are too many threads on here relating to property and family relationships breaking down. At the very least you need to put some sort of legal framework in place to cover things off between members, especially in the event of some breakdown. Take very serious legal advice on this
 
The house is worth €100k. The rent will probably be about €6k. Two users will get €2k each and two users will get €1k each. You will all have to do tax returns. Not a problem if you are doing them already.

Come to think of it, with all the PRTB nonsense, it's hardly worth being a sole landlord with a rent of €6k.

If either of the partners have not owned houses before, they will lose their First Time Buyer Status.

Just sell and invest the money in nice passive shares.

Brendan
 
Thanks for the advice so should explain. House is personnel to my aunt and she does not want it to be sold while she is alive so she wishes that we own it and maintain it as a second home,so we will not be renting it but instead use it as a holiday home. Sister and husband does not live in Ireland and will not use it as much as myself and my family. As said we are a stable family and while I am aware of the possibility of family breakups we are not in that place glad to say. My query was one of using the allowances that are available. Both my brother in law and my wife are not going to be using their cat C allowances ever so this way they get to use them. My sister and I are also best off using our cat B allowances not even though we will have further use for this cat in the future. The purpose now is to not have us hit with a tax now as we will not be selling the house.
 
Today it has become a difficult task to do the formalities of estate planning as estate law changes from state to state and making one wrong statement or additional can end up your estate plan so it is better to consult a legal adviser as estate planning lawyer Fairfax, VA from leemeierlaw where they solved my problems.
 
Chris King said:
Today it has become a difficult task to do the formalities of estate planning as estate law changes from state to state and making one wrong statement or additional can end up your estate plan so it is better to consult a legal adviser as estate planning lawyer Fairfax, VA from leemeierlaw where they solved my problems.
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First time Posto_O. Vancouver?? perhaps a solicitor would give you good advice on this!
 
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