3 names on deeds into 1

T

Trudee

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I wonder if anybody can advise in relation to a property (my home) bought by my parents forty years ago, they lived down the country (farm). Fifteen years ago they were advised by their solicitor to put the house into three names (mine and theirs) as opposed to just mine. They paid stamp duty etc at the time. However, now they cannot claim a pension because they own the property in Dublin, which I renovated from a dreadful condition and in a catch 22 position have made more valuable (not that this matters anymore in 2006 Dublin). To transfer the property into my name we would have to pay CGT and stamp duty (the house is valued at about 1m), is there anyway I can claim for the renovations over the years, I have all the receipts and video/pic evidence to reduce the amount payable. It seems a shame to see a man of 93 and woman of 84 not being able to claim a pension.
 
You should have a tax professional look at this situation for you. If you have invested a significant amount of money in the property and paid all of the outgoings for a long time there is an argument to be made that your parents hold at least some of their portion of the property on trust for you. This will reduce the value being given to you for both cgt and stamp duty purposes but a case will have to be made to the revenue.

You will also, when the calculations have been done, have to compare the tax payable with the value of the pension. Given your parents ages and the value of the property it may not make financial sense to transfer the property to get the non-contributary pension. Look at the capital sums required buy an annuity equal to the state pension. It may make more sense to raise money on the value of the property to purchase such an annuity or use the property in some other way to provide an income for your parents.

Sorry to be morbid but on the death of your parents, assuming the property is held as joint tenants the house will pass to you with no stamp duty or CGT. You also, as you seem to be aware, get the dwellinghouse exemption from CAT.
 
Thank you for your very sound response, was wondering where one goes to buy an annuity.
 
Pensions wouldn't really be my area but I think that an independant financial advisor - fee rather than commission based- would be the way to go.. You would get more info on this on the financial threads
 
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