Dad wants to sign over house to me

S

steppedout

Guest
Hello,

I would appreciate some advice as this an area I know nothing about and barely know what I'm talking about. I'm an IT specialist but a bit dumb when it comes to financial stuff!

My mother died in Jan 2011. I got married in November 2011. My dad wants to sign the family home over to me. There is no mortgage on this property, its probably worth about 300k. I would intend living there with him and my wife, we are currently renting. Problem is I have a step brother, from a previous marriage of my mother. Her first husband died. My dad has no time for him and doesn't' consider him his son. He doesn't want him to get anything. I don't have any other siblings.

So the main questions are:

1. What are the tax implications for me if my dad signs the house over to me?
2. Would I have to pay stamp duty?
3. Can my step brother challenge this should he find out?
4. If my father wills the house to me instead of a gift could my step brother challenge the will as he would get nothing?

My step-brother left the home when he was 18 and never contributed to the home, even though my father would have paid for his schooling.

I would appreciate some factual answers, and not comments that my step brother should get something as I want to keep emotions out of it.

I also realize that should my marriage end there are other implications but I have been with my wife over 10 years, even though just newly married, and can't see the marriage failing. We don't have children of our own.

Thanks guys,

Steppedout.
 
What is your father trying to achieve by signing the house over to you?

It just does not seem to be a good idea if it's his family home. By all means, go and live with him if you want.


But lots of things can go wrong.

Lots of marriages split up. It's hard for you to see this happening, but it could happen and you may have to sell the house to settle with your wife.

You may die before your father and your wife gets the house. She gets on great with your father, so no problem. But then she meets someone else and they want your father out.

I think that is the fundamental question you need to ask and answer. The rest of your questions are details after that.

I am not a solicitor, but a father in sound mind and not under pressure, can leave his property to whomever he wants. A solicitor would set up the will in such a way that any challenge to it would fail. That would discourage the step son from taking an expensive and stressful legal action.
 
Hello Brendan,

Thank you so much for your answer, just what I was looking for. Thats a great point on should I die.

In a nutshell the only reason he wants to pass the house to me is so that the stepson can't claim anything when my father dies. We would intend living with him and getting a lot of upgrades done to the house as it needs to be modernised. It would be terrible if after investing this money my step brother gains from it when my father passes. I also have nothing to do with my step brother, we well out after he didn't attend my wedding.

If it can be certain the will can't be challenged we will all be happy with that. He needs to see a solicitor, he is a a bit stubborn and suspicious of everyone, but no fool at the same time.

Again appreciate the answer, very valid points you raised.

My dad in under no pressure from anyone, its purely his own idea. I think he is also lonely since my mother passed away and would like our company so there is no other hidden agenda from anyone.

Steppedout.
 
One possibility to consider is that he give you the house subject to retaining a life interest for himself. That could protect him from any consequence of you and your wife splitting up, or your dying ahead of him.

If the house is worth more than €250k, Capital Acquisitions Tax becomes an issue. The retention of a life interest by your father would reduce the potential liability.
 
Hi Padraig, he may retain a life interest but if the OP and his wife separate, it could be very awkward. She stays with the father while the son leaves.

I am sure that the solicitor can draft a will with the clear objective in mind that the son gets the house. A simpler solution is much better than a complex solution which might have unintended consequences.
 
I don't see any grounds on which the stepson is entitled to anything. What is his legal relationship to your father, was he adoped by him etc.

In any case your dad should just make a will and leave everything to you. There are lots of negatives to him transferring the property to you from his perspective.
 
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