Cash Gift to purchase house

N

Netts71

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We're looking at the possibility of selling our home, selling my elderly mothers home & putting the cash together to purchase a property suitable for her to live with us.
We're a bit concerned whether we'd be liable for any capital gains tax on her 'gift' and also should her health deteriorate to a point where we are unable to care for her at home would we be expected to pay for her care (as she would have given us the proceeds of her home).
I should add that we are the sole beneficiaries of her will so basically we'd be having the inheritance early in return for housing her.
 
The "gift" from your mother to you is subject to Capital Acquisitions Tax. The life time limit parent to child is €310,000 so as long as the gift is not above this then there will be no CAT.

If it is then you might consider not taking the whole amount now and having her make a contribution to your household under the rent a room scheme.

I think it's disposal within the last 5 years that count for the fair deal scheme.
 
Might make more sense to contribute capital from both sides (i.e. the OP and his/her mother), buy one property as tenants in common, and then claim Dwelling House Exemption when she passes away...
 
Good call Gordon.

Had a nightmare getting this over the line recently with AIB. Just did not want the parent on the deeds and mortgage.
 
Joe_90 said:
Good call Gordon.

Had a nightmare getting this over the line recently with AIB. Just did not want the parent on the deeds and mortgage.
Click to expand...

Cheers. Best bet is to get a transaction like that moved across to Private Banking; they're on top of the issues.
 
Thanks everyone.
The "cash gift" will possibly be around £100,000 so I'm guessing won't be liable for any taxes?
We were thinking of just registering the property in our names (self & wife) with mum being listed as sitting tennant for mortgage purposes.

Her health & mobility isn't too good but manageable for us to cope with for the foreseeable future, but if say her needs change to a level that we cant manage in the home within the next few years could the local authorities insist we pay for her care (because of the cash gift)?
Thanks again!
 
As stated above property sold in the five years before the application will be considered in assessment by the HSE.
 
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