uncle died. property has been offered for sale to any of 5 members of family. at this point nobody is in a position to buy it. it will be put up for sale. would it be possible for all five members to take an equity stake in property without any money changing hands?
can we take an equity stake instead?
- Thread starter barryl
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It depends on the wording of the will, but it might be possible if all five are in agreement and executor is happy to do so.
Whether it would be advisable is a different matter. Five different people, with five different families advising them...later on if one or more want to sell and the others do not...or even worse if one dies and leaves even more beneficiaries...
Whether it would be advisable is a different matter. Five different people, with five different families advising them...later on if one or more want to sell and the others do not...or even worse if one dies and leaves even more beneficiaries...
Brendan Burgess
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Could one person not buy it with "loans" from the other siblings. In other words, if the house is worth €250k, you borrow €50k from each of your siblings on an interest only basis. You pay the interest from the rent.
you repay the loans when you sell the house or when you can afford to remortgage it.
Brendan
you repay the loans when you sell the house or when you can afford to remortgage it.
Brendan
Loans are a difficult area. Money lending legislation sometimes makes it difficult or impossible to recover a 'loan'. An interest in a property expressed as a 'charge' on the title is better security.
Again I wouldn't recommend anything that would mean recovering ones money means a court action. Messy and expensive.
Again I wouldn't recommend anything that would mean recovering ones money means a court action. Messy and expensive.
thanks,can i ask you what would happen with regard to new deed,stamp duty,legal costs,if family members agree to an eqity stake
Depends on if you are doing something different to the will or not. If not, executor could simply assent to the vesting of the property in the five names, which means no CGT or stamp duty on that and no additional CAT to the CAT from the estate itself.
However if what you are doing entails a deed of family settlement, then stamp duty might be necessary on that, depending on value of property transferred. Assuming no increase in value since the valuation date then no CGT. But could be CAT depending on the circumstances.
Then on a future disposal, potential CGT depending again on disposal price.
However if what you are doing entails a deed of family settlement, then stamp duty might be necessary on that, depending on value of property transferred. Assuming no increase in value since the valuation date then no CGT. But could be CAT depending on the circumstances.
Then on a future disposal, potential CGT depending again on disposal price.