Case study Buying house with parents

It's up to the parents to do what they want with their money. If they want to leave something to the other 2 children, that's their business. The other 2 siblings ARE NOT ENTITLED to anything, if the parents so wish.
 
Can I ask what the purpose of the transaction is? It seems a very messy solution and there might be a simpler approach to take.
 
Important detail: are the parents gifting the money to Mary, and then Mary purchasing the property solely in her name? Or are the parents retaining ownership of 2/3 of the house?
That would have consequences when the state (including that share)has to be distributed
 
I think Mary would need too fund the 2/3 of the value of property from her savings or a mortgage too pay off either her parents or siblings.
 
fonokelly1981 said:
However she has been advised that parents cannot be left without residence should this occur.
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This is very confusing.

Are the parents
1) Planning to sell their home
2) Giving the money to Mary
3) Buying the house with Mary
4) Then going to live with Mary.

Or if they are not going to live with Mary, where are they going to live?

What age and health are the parents? Are they trying to get around the Fair Deal scheme limits by selling their home?

Brendan
 
Its still not clear. Is this correct?

Pat and Jane are going to buy a house with their daughter Mary worth €300K. They will pay for it. €100K is a gift to Mary. They intend leaving their share of the house, worth €200K to their other 2 children ( Jim and John) in their will. This is their entire estate.

Pat, Jane and Mary will all live in the house, I think. You haven't made this clear

When Pat and Jane pass away, Jim and John will now own 1/3 each of the house but will want the cash.


If this is the case, the three children will have to sell the house for Jim and John to get the cash from their inheritance.
If Mary doesnt want to, it will end up in court or a massive family row.
 
Make another will, leave everything to Mary, problem solved. Also solved if the house is in Mary's name and no will made.
As a parent, if that was all I had left and I had 3 children (grown up) I'd be thinking of myself and my wife, and where we would live. An awful sense of entitlement from adult children in this scenario, fair play to Mary, that's what I would say. It's not an easy thing for parents to move in with family (daughter/son), nor is it easy the other way around.
The way you describe it as, is a disaster waiting to happen.
 
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noproblem said:
The way you describe it as, is a disaster waiting to happen.
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That is why I am trying to figure out what is proposed here.

Why would the parents sell their home?
I presume Mary is single. What happens if she meets someone and wants to live with them?
What happens if the parents need full-time care?
Will the house have to be sold to repay the nursing home fees?
Will the other two siblings want their "entitlement"?

If Mary is 70 and the parents are 90, this might make sense. But I am assuming that Mary is probably about 40 and the parents are about 70 but the OP wants us to answer the question without giving us the information needed.

Brendan
 
fonokelly1981 said:
How can one purchase a house with parents if parents contribution will be approx 2/3 (300k proceeds from sale of house *no mortgage*|) of the cost with Mary contributing 1/3 of her own funds (100k equity in home post sale and costs).
Therefore no mortgage on property.
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This is also very confusing...
Parents sell their house which yields €300k.
They use this towards 2/3rds of the house that they'll share with Mary.
So that house will presumably cost €450k?
Mary is bringing €100k of her own money to the deal.
Is this the net proceeds from the sale of her current home?
Where's the other €50k coming from?

Note that, as mentioned earlier, no child has any automatic entitlement to their parents' assets.
But are you saying that the parents would like to leave 1/3rd of their estate to each of the three children?

Why doesn't Mary use her €100k and a mortgage to buy her own house (or stay put if she already has one) and the parents stay put?
 
fonokelly1981 said:
Could Mary approach a bank to get any sort of mortgage to pay siblings their share?

would this have a lot of tax implications for them if so?
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There is no way for any of us to know if Mary will be able to get a mortgage when her parents pass away, when she might be retired.

There is a lot of confusion in the information you are giving us. You make it sound like it is Mary's idea, that her parents should give her all their money, when they want their estate to be shared between their three children. Why would they do that?
 
OP says "however these funds are now gone to the purchase of Marys Family home"
That's the answer.
You cannot have your cake and eat it.
 
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