Father leaving house to daughter but daughter to give brother a lump sum. Any Tax?

M

MartinH

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Hi,

Hope you can answer a question.

If a father states in the will that he wants to leave the family house to his daughter on the condition that the daughter gives the son/brother 100,000 euro. Is the 100,000 taxable?

If it is taxable is there a way to make this more tax efficient in the will? The father is still alive so he can change the will if need be.

Thanks
Martin
 
I think it would be a much better idea to give the son a share of the house equivelent to what percentage 100K is today.

What happens if the daugher has no money later or is not inclined to pay the 100K. This way she's forced to get the 100K nor matter what.

How much is the house worth?
 
Thanks for the reply.

The house is worth 620K. Based on this I am thinking a bank would loan her or give her a mortgage for the 100K to pay the brother? It also states in the will that the house is to go to her on on the "Condition" she gives the brother 100K

If she does give the brother the 100K, will this be seen as a Gift from the sister to the brother and therefore the brother would be taxed on the amount above the threshold for Group B of 32.5K.

Is it just much safer and tax efficient to change the will to give the brother a share in the house equal to 100K, then the sister buys the brother out?
 
Hi Martin

I just checked my mother's will which was drawn up by a solicitor some years back. Referring to the family home, the wording is 'I give devise and bequeath my said property to my son XXXX provided he has survived me subject to and conditional upon him paying to my daughter YYYY within one year of my date of death an amount equal to half the value of my property ..'

My understanding of this has always been that any payment from XXXX to YYYY in this context would be deemed to be an inheritance to YYYY from my mother ..... and not from XXXX.

My understanding is open to correction. Hopefully someone with a legal background reading this can perhaps clarify ??
 
This would be seen as an inheritance of €520k to the sister from the father and an inheritance of €100k to the son from the dad.

It would not be a good idea to leave a share in the house to the son.

There probably should be a clause in the will to say that if the sister does not pay the €100k within one year, the executor is to sell the property and distribute the proceeds.

Brendan
 
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