5 children inherit a house - one wants to buy but can't get mortgage

Thanks for the input all.
We have spoken again today,would there be any Tax issues if she pays the siblings either 60k or 40k each ?

How would the stamp duty be split ? Would she only pay 80% of the total amount due as she inherited 20% value of the house ?

Thanks again
 
A little update on this case.
1 of the siblings has offered too sell there share too the sibling living in the house.
The price is fair and both sides are happy too proceed.
The sibling wants a quick sale (cash deal outside of will ) what would be the best way too proceed ???

Would there be any taxes/stamp duty due on the 20% share ???

Would a contract signed up and witnessed by the executors/all parties involved be enough or would a solicitor need too be involved ?
Thanks
 
Pinoy adventure said:
A little update on this case.
1 of the siblings has offered too sell there share too the sibling living in the house.
The price is fair and both sides are happy too proceed.
The sibling wants a quick sale (cash deal outside of will ) what would be the best way too proceed ???

Would there be any taxes/stamp duty due on the 20% share ???

Would a contract signed up and witnessed by the executors/all parties involved be enough or would a solicitor need too be involved ?
Thanks
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Isn't your mother's will going to have to go to probate before anything else happens?

By saying that one sibling has agreed to sell their share are you perhaps implying that the others are holding out or may not want at all to sell to the resident sibling?

If all siblings are not likely to agree and cooperate on the sale of the house to the resident sibling then I think that the questions in your original post may be moot.
 
ClubMan said:
Isn't your mother's will going to have to go to probate before anything else happens?

By saying that one sibling has agreed to sell their share are you perhaps implying that the others are holding out or may not want at all to sell to the resident sibling?

If all siblings are not likely to agree and cooperate on the sale of the house to the resident sibling then I think that the questions in your original post may be moot.
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She has spoken too 2 siblings and both have agreed too sell (well 1 approached the subject quite quickly looking to sell) so she discuses with the other who agreed too sell also.

My guessing sooner or later the other 2 will have too decide what they want too do with there share of the home once the sibling living in the house has a chat with them in due course.
 
Ok, but my other point about the mother's will needing to go to probate still stands and that could be the time to talk to the solicitor about putting any agreement to buy out the siblings' shares in the house on a formal footing.
 
ClubMan said:
Ok, but my other point about the mother's will needing to go to probate still stands and that could be the time to talk to the solicitor about putting any agreement to buy out the siblings' shares in the house on a formal footing.
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Yes your correct on probate.i believe the gathering of information is ongoing.
 
Who is the executor? They need to be made aware of the sale of one fifth to a sibling. It is all probably most straightforward if the solicitor doing probate organises everything.

The sibling either sells their share for (let’s say €50K) to the daughter or gives up their part of the inheritance in favour of the daughter and gets a gift of €50K from the daughter. The solicitor can probably organise it in the most efficient and tax effective manner. IANAL but putting the house into the ownership of the 5 siblings and then selling portions probably brings on stamp duty and 2 sets of transaction costs, but giving up the inheritance in favour of the daughter and the her gifting her sibling €50K probably means gift tax. I am sure solicitors organise this type of thing all the time so will assist in the best way to proceed. Handing over €50K cash now is probably not a good idea. Probate takes time.

Are these the two siblings she is friendliest with or the two most difficult ones? I would use the cash she has to deal with the most difficult ones first.
 
Clamball said:
Who is the executor? They need to be made aware of the sale of one fifth to a sibling. It is all probably most straightforward if the solicitor doing probate organises everything.

The sibling either sells their share for (let’s say €50K) to the daughter or gives up their part of the inheritance in favour of the daughter and gets a gift of €50K from the daughter. The solicitor can probably organise it in the most efficient and tax effective manner. IANAL but putting the house into the ownership of the 5 siblings and then selling portions probably brings on stamp duty and 2 sets of transaction costs, but giving up the inheritance in favour of the daughter and the her gifting her sibling €50K probably means gift tax. I am sure solicitors organise this type of thing all the time so will assist in the best way to proceed. Handing over €50K cash now is probably not a good idea. Probate takes time.

Are these the two siblings she is friendliest with or the two most difficult ones? I would use the cash she has to deal with the most difficult ones first.
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2 of the siblings are the executors and are fully aware & agree too the sale. The sibling who offered the quick cash sale was/is (well they thought she was the worst too deal with but turned out the easiest ) too deal with.

I don't think the gifting of let's say 50k would work as the Gift tax limit for siblings is €32,500 (well unless she added in the small gift €3000 per person per year ).

The person living in the house is getting is due too get legal advise as the best way too proceed.
 
So where do they all stand at the moment?
1) Is it agreed that the price/value is €300k ?
2) Is it agreed that the occupant can buy it at that price?
3) What is actually agreed and what is in dispute?

The best approach to any issue like this is to agree what you want amongst yourselves and then tell a solicitor to implement it.

If you do a side deal with one sibling, the others may resent it.

If you go to a solicitor now to find out the best way to proceed, there is a real risk that a gung-ho solicitor will fire off a legal letter and force everyone into a fixed position.



Brendan
 
Brendan Burgess said:
So where do they all stand at the moment?
1) Is it agreed that the price/value is €300k ?
2) Is it agreed that the occupant can buy it at that price?
3) What is actually agreed and what is in dispute?

The best approach to any issue like this is to agree what you want amongst yourselves and then tell a solicitor to implement it.

If you do a side deal with one sibling, the others may resent it.

If you go to a solicitor now to find out the best way to proceed, there is a real risk that a gung-ho solicitor will fire off a legal letter and force everyone into a fixed position.



Brendan
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#1 they will get a estate agent too put a value on the property (letting the EA know that 1 sibling wants too buy the others out & keep it in the family )

#2 once value is put on it by the EA they will then begin the horse trading. Let's say it's 300k that's 60k a head so I would guess offers in the region of 40-45k would be made for each of the shares,with a bit of horse trading this may raise too 50k a share but won't go much beyond that figure going by house prices on the likes of daft etc

#3 nothing is agreed and nothing is in dispute,they are just in the talking stage too see what everybody thinks of the idea.


The deal will be the same for all parties,price put on house by EA,split 5 ways and offers made in respect of the 4 who hold 20% each.once figures are agreed amoung all parties they will get a solicitor involved too proceed with the sale of the house and probate of the will.
 
Would it make more sense to pay for a valuator, who will look at recent house sales in the area, rather than a state agent who has a vested interest to get the highest possible price?
 
Bilbo1 said:
Would it make more sense to pay for a valuator, who will look at recent house sales in the area, rather than a state agent who has a vested interest to get the highest possible price?
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Yes you could be correct.i though the estate agents puts a value on property.
The situation would be clearly explained too whom ever it is doing the valuation.
 
Pinoy adventure said:
#2 once value is put on it by the EA they will then begin the horse trading.
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Just thinking about this.

If you get someone to value the house on behalf of the 5 of you for the purposes of a deal, then that value should stand. There should be no horse trading.

If you are going to horse trade, then you don't need a valuer. Make an offer and see what happens.

The alternative is that the buyer appoints a valuer for themselves to negotiate with a valuer for the sellers.

Brendan
 
Brendan thanks once again for your input.If they did choose the horse trading way and made an offer (slightly under the rough market price as nobody wants too short change anybody )how would it work ?
Would it matter too revenue if the house was undersold or sold undervalued too 1 of the siblings ? Would revenue see that as a gift ?

What I'm thinking is if a value of between 250k (being cheap) and 300k (being about right) would there be any concern with revenue if they sold there 80% share for €180 k when it could easily reach €200k or more on the open market ?

Thanks again
 
Revenue is not interested in small differences like that. They genuinely have higher priorities to deal with.

The executors have to get a valuation at the date of death ( I think).

A subsequent transaction 20% more or less than that is unlikely to be of any concern to Revenue.

If you value it for Probate at €100k and sell it 6 months later for €300k, Revenue might be interested.

Brendan
 
Bilbo1 said:
Would it make more sense to pay for a valuator, who will look at recent house sales in the area, rather than a state agent who has a vested interest to get the highest possible price?
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An estate agent will give a low or high valuation (within reason) depending on your needs.

Even apart from any potential agreement between the siblings to allow the resident sibling to buy them out, the house is almost certainly going to have to be valued for probate anyway so there's almost certainly no choice about doing this.
 
I know it's not your direct question. But, how did the family look after the carer? From the details here it seems the carer got a raw deal. I think you said they lived in the house paid all bills and cared.

Fair deal would have eaten a significant amount.

Paid home help costs money.
 
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