Allowing my daughter to live in our holiday home rent-free?

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Gorteen

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We have just bought a home near the West coast, which we plan to use as a holiday / weekend retreat. Our daughter (single, no kids) lives in the general area of our new purchase. Can she live there rent-free (to allow her save her current rental money for a deposit for a house/apartment or will she have a 'revenue issue'?
The basic concern I have is that doing something nice for an adult child might cause more problems than it solves. It just seems a shame that it might be better to leave our new purchase empty when we are not there!
Any helpful advice?
 
Revenue is not really interested in such issues.

But let's say you do everything by the book and she makes a return. (You have no liability)

She will be deemed to have received a gift equal to the rent - say €7,000
She gets a small gift allowance of €3,000 ( maybe even €6,000 with €3,000 from you and €3,000 from your spouse)
Subject to CAT: €4,000

She is entitled to liftetime gifts and inheritances of €335,000 tax-free.
So she will have "only" €331,00 left.

Brendan
 
Gorteen said:
We have just bought a home near the West coast, which we plan to use as a holiday / weekend retreat. Our daughter (single, no kids) lives in the general area of our new purchase. Can she live there rent-free (to allow her save her current rental money for a deposit for a house/apartment or will she have a 'revenue issue'?
The basic concern I have is that doing something nice for an adult child might cause more problems than it solves. It just seems a shame that it might be better to leave our new purchase empty when we are not there!
Any helpful advice?
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Sure is she not just enjoying a stay in the family holiday home. Keep the bills in your name.
 
Brendan’s correct, Revenue have very little interest in cases like this.

What’s suggested makes eminent sense.

There should be two lots of €3k exemption, so a €6k shelter, plus you can apply a ‘caretaker discount’ to the market rent to reflect the fact that she’s looking after an otherwise vacant property for you. That can be 25-40%.
 
DannyBoyD said:
Giving free accomodation to off-spring frequently leads to rows and disagreements over time
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Maybe it does, but the advantages of saving the rent elsewhere and looking after the property hugely outweighs that risk. And that risk can be mitigated.

If I lived in Dublin and my parents allowed my sister who lives in Galway to stay in their holiday home in Galway, I don't think I would really fight over it.

Brendan
 
DannyBoyD said:
Giving free accomodation to off-spring frequently leads to rows and disagreements over time.
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The daughter could be an only child from what has been posted. As Brendan has said, vague posts simply sowing fear, uncertainty, and doubt, don't really add much to the conversation.
 
There is no tax issue, but 2 other observations.

@DannyBoyD has raised a valid point to consider. You've 2 other children that you might not be able to help in the same way when the time comes. Make sure communication is clear with all your children so expectations aren't set that you can't meet.

And on a practical level, it's very important that your daughter manages her finances carefully in advance of applying for a mortgage. Without rent payments to evidence affordability, she should be disciplined in setting aside adequate regular savings monthly, and not dipping into them for any reason.
 
Can the parents just draw up a rental agreement and charge a low rent. Insert clauses about visiting etc.
 
I remember a friend of mine who had a few rentals in the US saying how careful she was when renting to strangers.. and was twice as vigilant when renting to her daughter. If your daughter is in a relationship etc and it was to break down, things can get messy. Or if person wants to try claim HAP etc.. you never know what someone could do.
Do the nice thing if you can but keep yourself covered in case of some negative situation.
 
Gorteen said:
Can she live there rent-free (to allow her save her current rental money for a deposit for a house/apartment
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Maybe "poverty" is the wrong word.

But you would seem to prefer that she pays rent to someone outside the family and leave a home empty to living in a home owned by her parents?

Just in case some unspecified problem might arise in the future!

Brendan
 
Brendan Burgess said:
But you would seem to prefer that she pays rent to someone outside the family and leave a home empty to living in a home owned by her parents?

Just in case some unspecified problem might arise in the future!
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What I would prefer is immaterial; it's the OPs decision to make.

Family divisions can and do happen with these sorts of ad-hoc arrangements. It's not unknown for feuds and falling-out to lead to long term estrangements.

If I were looking at helping out an adult off-spring; I think a lump-sum & let them make their own choices would be the way I'd go.
 
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